When we travel overseas, we regularly find ourselves taking note and appreciating those subtle reminders of home.
Strolling past an RM Williams store in London, coming across our renowned surf or health brands in retail outlets, a famous Australian on the world sporting stage, or familiar brands of food and wine products in supermarkets.
Yet, there’s one major Australian export that is increasingly everywhere, but goes almost unnoticed, and that’s your super savings.
But make no mistake, as your super fund scours the world looking for opportunities to grow your retirement savings: it’s also strengthening not only Australia’s economic and diplomatic ties, but shoring up our growing influence on the international financial landscape as well.
While much of this flows into financial markets with investment in companies, it’s also being invested into ‘real’ assets.
So next time you find yourself in an airport in Vienna or Manchester, driving on a toll road in Italy, the USA or France, using the high-speed internet in regional Germany or spellbound by the magic of AI in the US, home might be closer than first thought. Indeed, there’s a pretty good chance you might even own a piece of these assets yourselves.
That’s the power of super – it gives working people a chance to gain exposure to multi-billion-dollar infrastructure investments that would otherwise not be possible. It lets hardworking Australians invest and own assets as though they’re the wealthiest people in the world.
This is a trend that will only continue as the Australian superannuation system expands – so much so, that capital itself will, in fact, become one of Australia’s most important exports. For a country renowned for its exports, that’s no mean feat.
The numbers speak for themselves – and they’re getting bigger and bigger. As of September, this year, the total pool of Aussies’ retirement savings is $4.1 trillion, or around 149 per cent of GDP – one of the largest pools of retirement capital in the world as a percentage of GDP.
By 2040, this pool of capital is expected to reach around $11 trillion or 193 per cent. Of this, the ‘institutional’ funds (industry, retail and government) account for $2.8 trillion currently, and this is expected to get to just over $8 trillion.
This capital is truly going global.
Institutional funds currently have around $1.2 trillion in offshore investments – or around 46 per cent of their invested assets.
If this proportion holds, the current quantum will need to treble to around $3.6 trillion invested overseas by 2040.
It is likely that this asset allocation will edge upwards somewhat as the Australian economy and the investment opportunities it presents simply won’t grow fast enough to absorb this. To put this task in context, the additional $2.4 trillion that will flow offshore is around 63 per cent of the just under $4 trillion Australia invests in total in overseas assets currently.
Where will it all go? Australian capital will clearly go to all corners of the globe, diversifying across global financial markets and real assets.
In today’s corporate world, women executives are breaking barriers, leading industries, and driving innovation. However, beyond the boardroom, many face a hidden challenge: the “second shift”—the relentless responsibilities of caregiving that persist long after office hours.
The Reality of the Second Shift
For decades, research has shown that women, regardless of their career success, still carry a disproportionate share of household and caregiving duties. While progress has been made in workplace equality, the expectations at home have not shifted at the same pace. A senior executive may spend her day negotiating multimillion-dollar deals, only to return home and oversee homework, dinner, and aging parent care. The mental and physical toll of balancing these dual roles can be overwhelming.
Why the Burden Persists
Several factors contribute to this ongoing struggle:
Cultural Expectations – Traditional gender roles still influence perceptions of responsibility at home, even among progressive families.
Guilt and Societal Pressures – Many high-achieving women feel the need to “do it all,” fearing judgment if they delegate caregiving tasks.
Lack of Institutional Support – While companies are making strides in flexible work policies, systemic changes in caregiving support are still lacking.
Invisible Labor – Planning meals, scheduling doctor appointments, and organizing household logistics often fall to women, adding an unrecognized mental load.
The Impact on Career and Well-being
This dual responsibility affects not only personal well-being but also professional growth. Studies show that executive women are more likely to experience burnout than their male counterparts, often leading to career stagnation or early exits from leadership roles. The constant juggling of high-stakes decisions at work and emotional labor at home can lead to stress, fatigue, and feelings of inadequacy.
Rethinking Support Systems
To create sustainable career paths for women leaders, organizations and families alike must rethink support structures. Here’s how:
Corporate Policy Shifts
Redefining Household Roles
Building a Strong Network
A Call for Change
The silent struggle of women executives managing the second shift must be brought to light. Recognizing and addressing these challenges is not just a women’s issue—it’s a leadership and societal issue. By redefining success, advocating for systemic support, and shifting outdated expectations, we can create an environment where women no longer have to choose between thriving at work and fulfilling personal responsibilities.
Final Thought
True progress means acknowledging the unseen burdens and reshaping the future of leadership to be more inclusive, sustainable, and balanced. The conversation starts now—how will your workplace, home, and community support change?
As an aspiring non-executive director, one of the most crucial concepts to understand is the balance between being deeply involved in the governance of a company while trusting the management team to execute the day-to-day operations. The idea of “noses in, fingers out” is the guiding principle that sets effective directors apart. It’s about engaging strategically without micromanaging—especially when it comes to financials.
What Does “Noses In, Fingers Out” Really Mean?
The phrase “noses in, fingers out” might sound simple, but it encapsulates the fundamental role of a director in corporate governance. Directors are responsible for oversight, strategy, and risk management, but they are not there to run the business. The management team, led by the CEO, is responsible for day-to-day operations and execution.
The essence of this principle lies in strategic involvement—directors should be deeply informed and engaged with the company’s financials and broader strategy. However, they should never cross the line into micromanagement of operations. Directors must ask the right questions, challenge assumptions, and guide the company’s direction while allowing the management team to lead.
Why Financial Fluency Is Key for Directors
While this approach may seem intuitive, many non-financial directors struggle with the financial side of things. A lack of financial literacy can lead to uninformed decision-making or, worse, a passive approach where directors fail to challenge critical decisions.
As an aspiring director, having a basic understanding of financial statements and key performance indicators (KPIs) is non-negotiable. But you don’t need to be an accountant to be effective. What you need is the ability to ask the right questions and understand the strategic implications of financial data.
Here are just a few reasons why financial fluency is crucial for directors:
Informed Decision Making: Directors need to understand the numbers behind business strategies. Whether it’s capital allocation, cost management, or investment decisions, financial knowledge enables directors to steer the company in the right direction without getting bogged down in the details.
Governance and Risk Management: Financial literacy is also essential for understanding risks—whether they be operational, market-based, or financial. A well-informed director can spot financial red flags, such as declining profitability or cash flow issues, early on and help mitigate them.
Communication with the CFO and Executive Team: A strong relationship with the CFO relies on mutual understanding. A financially literate director will be able to ask insightful questions during board meetings and have more meaningful discussions with the finance team. This communication helps ensure the company stays on track and avoids costly missteps.
How to Balance the Two: “Noses In, Fingers Out”
Mastering the “noses in, fingers out” approach doesn’t mean directors need to be finance experts, but it does mean they should be strategic and inquisitive. Here are a few key ways to stay “noses in” without “fingers out”:
Ask the Right Questions: When reviewing financial statements, a director shouldn’t just accept the numbers at face value. Question assumptions—are the projections realistic? What are the potential risks? What’s the cash flow position? A solid understanding of the key metrics will help you ask better questions.
Focus on Strategy, Not Operations: Directors must always remember their role is strategic, not operational. While it’s important to understand the financial health of the organization, leave the tactical decisions to the executive team. Guide the overall strategy based on your financial insights.
Use Financial Data to Drive Governance: Good governance isn’t just about compliance; it’s about using financial insights to make better decisions for the long-term success of the organization. Directors should ensure financial data supports the company’s overall strategy and risk management framework.
Conclusion: Financial Fluency for Effective Governance
Becoming a director is about leadership, strategy, and governance. It’s about knowing when to engage deeply and when to step back and let the management team lead. Financial literacy plays a central role in ensuring that directors can be effective stewards of the company’s future, spotting risks, asking the right questions, and making decisions with confidence.
So, aspiring directors—master your financials, stay “noses in”, and trust your team to handle the rest. After all, the best leaders empower others to do what they do best, while steering the ship in the right direction.
Students at the University of Maryland are fighting to get to the top of Michael McMillan’s class waitlists. No, he’s not lecturing on a flashy new topic like artificial intelligence or Taylor Swift, he’s teaching personal finance—and students are more interested in the subject than ever.
More than half of all Gen Zers are entering adulthood without any formal financial education, and it’s causing real generational financial trauma, according to a recent study. McMillan, who is an associate clinical professor at the University of Maryland’s Smith School of Business, says parents are in part to blame.
“Parents are either unwilling, not knowledgeable, or uncomfortable about talking about sex with their children,” McMillan says. “This happens in the same case when it comes to money and managing money.”
However, adults may not be teaching their kids about finances in part due to their own lack of financial know-how. Over 75% of parents report not being completely confident in their ability to teach their children about investing, according to a survey by the SIFMA Foundation. A similar percentage said they would enroll their child in a different school if it had financial education and investment courses.
The benefits of teaching personal finance
Students’ finances are a leading cause of stress for most college students. In fact, close to three out of every 5 college students have considered dropping out of college due to financial stress, according to a recent Ellucian report, and nearly 80% of students say financial stress has harmed their mental health
When paired with the fact that college debt has ballooned to over $2.1 trillion, not many will argue against a need for personal finance education.
“Money causes stress, and money takes your attention away from your studies,” McMillan says. “So by helping them with finances and providing mentoring and counseling, we’re in fact, improving at least some aspect of students’ mental health, which is so important nowadays.”
Dorothy Kelly, lecturer of personal finance at the University of Virginia adds that having financial wellness can positively affect one’s entire life, including emotions, relationships, work productivity, and sleep.
“My ultimate goal for everyone, for all my students, is to make financial choices to enjoy life that allows you to enjoy life,” Kelly tells Fortune.
But, both professors say that despite the benefits, personal finance should not be required at the college level. Instead, students should want to take the course.
“Everybody needs to learn this, but we learn when we’re motivated to learn,” Kelly says. “And I encourage anybody—it’s never too late to learn. The sooner people start learning about financial literacy, the better; the sooner their life is improved.”
Does personal finance education work?
McMillan has taught college students about insurance, wages, and credit cards for decades but says he is constantly surprised that young adults are not familiar with basic financial information. However, a lack of personal finance know-how is not exclusive to undergraduates; McMillan says that even some MBA students lack foundational financial knowledge.
Today, he has two courses: one for first-years, sophomores, and transfer students and another for seniors. This division is not tied to basic versus advanced finance: it’s about focusing on what topics are most pressing for young adults.
“If you’re trying to figure out how to make a budget, you don’t care about investing in bonds, all of these other important but in some ways esoteric topics based upon what your current needs are,” he says.
More than half of all states mandate high school students to take financial education courses to graduate, and the National Endowment for Financial Education says it can be largely beneficial. Its research has found that students in states with the requirement are 21% less likely to carry a credit card balance and take on average $1,300 less in private loans.
However, Kelly says that doesn’t always work. Despite Virginia being one of the states with the mandate, her students largely say they didn’t remember what they were taught—despite it just being four years ago.
And while there’s no guarantee a college course will revolutionize one’s budget either, Kelly says students have reported being much more equipped at things like signing up for insurance at their first job or using a budget to make their dream job work out financially.
Andrea Pellegrini, assistant director of the University of Illinois System’s University Bursar Student Money Management Center, notes that education can only go so far.
“We also have to be advocates for change in a system that is not equitable in a lot of ways across the board,” Pellegrini tells Fortune. “And so advocating for marginalized groups, be them in college or out of college, is really important.”
She encourages individuals—no matter their age—to be aware of their finances, be skeptical of opportunities that sound too good to be true, and above all, be willing to forgive themselves.
“Don’t beat yourself up if something happens, recognize that it’s a learning opportunity, and identify where you want to make changes,” she says.
For many women, launching a small to medium-sized business offers an opportunity to redefine the way they lead, moving away from traditional patriarchal models toward a style that aligns with their values. Unlike corporate settings, where rigid hierarchies and established practices are often entrenched, a businesswoman starting her own venture has the freedom to build a culture that prioritizes inclusivity, empathy, and innovation from the ground up.
One of the biggest advantages of small business ownership is the flexibility to design a personalized leadership style. Rather than conforming to a top-down, competitive model, women can establish their own framework, where collaboration and mutual respect are central. They can prioritize values that feel natural and sustainable, such as open communication, shared decision-making, and long-term relationship building. This approach creates a work environment that encourages employees to thrive and feel valued.
Small to medium businesses also allow women leaders to focus on team well-being alongside profit. While many corporate structures often reward revenue and growth at the expense of employees, a small business can integrate work-life balance policies that nurture a happy, productive workforce. From flexible hours to a supportive family-friendly culture, these choices help foster a workplace that respects the individual needs of team members. This compassionate approach to leadership not only improves morale but also reduces turnover, ultimately benefiting business longevity.
Additionally, mentorship and development can be core components of a small business, allowing women to pass on their unique perspectives and help build other leaders. In many large companies, mentorship is overlooked in favor of immediate productivity; however, in a smaller setting, businesswomen can nurture talent and encourage growth, creating a ripple effect of positive change.
Finally, running a business offers a direct way to influence industry practices. As women-owned businesses become more prevalent, they challenge traditional models and offer compelling proof that empathy and collaboration drive success. By taking the lead in designing workplaces that reflect these values, businesswomen are not only achieving personal fulfillment but also paving the way for a broader cultural shift toward balanced, inclusive, and effective leadership.
The New Year is a time for fresh starts. It’s a symbolic moment when people across the globe turn the page to begin anew, motivated by a sense of optimism and the possibility of change. Many set New Year’s resolutions, eager to improve themselves or their circumstances in the coming year. The idea is simple: the calendar flips, and so should our habits, health, or personal growth. But let’s face it—this isn’t the first time you’ve thought about making a change. It’s not even the first time you’ve vowed to start fresh. Yet, you may have found that those resolutions tend to fade long before the year ends.
You’ve set goals in the past: lose weight, get fitter, save more money, or finally read that book you’ve been meaning to. And each time, you had the best intentions. But by February, you’re back in the same routine, and the resolution feels like a distant memory. The cycle of good intentions and eventual disappointment is so common that it’s almost expected. But here’s the good news: this year can be different.
Why Resolutions Fail: The Common Pitfalls
Research shows that approximately 80% of New Year’s resolutions fail by February (U.S. News & World Report, 2019). The most common reasons? Unrealistic goals, lack of clear planning, and the challenge of forming lasting habits. For example, making an ambitious goal like “I will lose 30 pounds in one month” is often set up for failure, because it’s both unrealistic and unsustainable. Instead of setting yourself up for inevitable disappointment, it’s crucial to set specific, measurable, and achievable goals.
Another common trap is the lack of a concrete plan. Simply saying “I want to get healthier” isn’t enough. Without clear actions or steps—such as committing to exercise three times a week, cooking more at home, or tracking food intake—it’s easy to get sidetracked. Research from the American Psychological Association shows that people are more likely to succeed when they break their goals into smaller, actionable steps.
Perhaps the biggest reason resolutions falter is the failure to build habits. It takes time and consistency to change behaviors, and it’s difficult to stay motivated without support. This is where an accountability partner comes in.
The Power of Accountability
Accountability is a game-changer when it comes to sticking to New Year’s resolutions. An accountability partner can help keep you on track, offer encouragement during tough times, and hold you responsible for your goals. The concept of accountability has been studied extensively and proven to increase the likelihood of success. According to research from Gretchen Rubin, author of Better Than Before, accountability partners are one of the most effective ways to ensure that new habits stick.
The benefits of accountability are well-documented. Studies show that when people know someone else is watching and supporting their progress, they are more likely to follow through. A study published in The Journal of Applied Psychology found that people who made public commitments were more likely to achieve their goals, because of the social pressure and desire to avoid disappointing others.
An accountability partner acts as both a motivator and a reality check. This person doesn’t have to be someone who shares your exact goals. It could be a friend, family member, colleague, or even a coach. Their role is to check in on your progress regularly, encourage you when you’re feeling discouraged, and hold you accountable for your actions. This added layer of external motivation helps keep you aligned with your resolutions, especially when the going gets tough.
How to Find the Right Accountability Partner
The key to a successful accountability partnership is choosing someone who is supportive, trustworthy, and invested in your success. Ideally, this person should be someone you respect and feel comfortable confiding in. They don’t need to have the same goals as you, but they should be committed to helping you stay on track.
In addition, it’s important to set clear expectations for your partnership. How often will you check in with each other? Will you meet weekly, monthly, or communicate online? Be specific about what you need from each other. Are you seeking advice, motivation, or just someone to listen? Once the ground rules are set, you’ll both be on the same page and more likely to achieve your goals.
Making This Year Different
This year, instead of relying solely on willpower to achieve your New Year’s resolutions, consider adding an accountability partner to the mix. Research shows that this simple step can dramatically improve your chances of success. By setting realistic goals, creating actionable steps, and involving someone who cares about your progress, you increase the likelihood that your resolutions will stick—not just for a few weeks, but for a lifetime. So, why not make this year the year that really changes? Find your accountability partner, set your goals, and watch how far you can go.
The housing market is not friendly to would-be buyers without help from mum and dad. So many are turning to the sharemarket for help.
Sophie MacPherson, 25, has been investing since she picked up a copy of The Barefoot Investor as a teenager and thought she ought to “dip a toe in”.
After eight years, she plans to use some of it for a home deposit.
MacPherson, who is a policy officer in Sydney, is among the growing number of young people turning to the sharemarket to turbocharge their savings in the hope they will make enough for a house deposit.
The combination of (until recently) lacklustre wage growth, higher rents and soaring home values make keeping up with property price growth a Sisyphean task for those trying to break into the market.
MacPherson was investing monthly into exchange-traded funds in 2022. Although she has stepped it back recently to chase high interest in her savings account, she still has about 50 per cent of her money in shares.
“Ideally, I wouldn’t liquidate my entire portfolio to buy a property, but I would liquidate some to help form a deposit,” MacPherson says, admitting it’s tricky to manage her HECS debt while breaking into Sydney’s “crazy” property market. So, she thinks it’s likely she’ll have to tap her investments.
“If the right property came up towards the end of this year or next year, we would definitely be open to putting an offer on something like that.”
Here is a guide to investing if you want to buy a property within one year, a couple of years or in a decade’s time.
Within a year
This timeframe is too short for investing in financial markets, says Melody Edwards, a financial adviser at Evalesco.
“The chance of losing capital over that amount of time is considerable,” she says. “So unless you’re flexible on your purchase date, to the extent you can ride through something happening, you really want to keep it more secure savings.”
HSBC head of investments Donahue D’Souza agrees that the amount of risk you can take on is tied closely to your timeframe.
“An investment horizon of up to two years is typically seen as short term, medium term is three to five and long term is greater than five years.”
A one-year timeframe is very short for the sharemarket, so if you’re planning to buy soon, cash is your friend, D’Souza says.
But that doesn’t mean you can’t make your money work hard.
Canstar analysis finds a person with $100,000 who put it into a high-interest saving account earning 5 per cent, and deposited $1000 a month, would earn $5018 in interest in 2025.
Someone with a $150,000 savings balance would reach $169,401 over the same period if they contributed the same $1000 a month, while someone with $200,000 would have $221,784.
The First Home Super Saver Scheme, in which borrowers can withdraw up to $50,000 of voluntary superannuation contributions, is another option and offers some tax benefits, as savings within super are taxed at only 15 per cent.
In two to three years
If you’re thinking of buying within two years, you’d still be largely in high-interest savings accounts, says Edwards.
But once you reach three years, you may consider adding a small portion of investments, such as diversified or exchange-traded funds. “You’d probably still be 75 per cent to 80 per cent in cash,” she adds.
D’Souza agrees liquid and defensive assets – those that are less likely to lose value – should still be front-of-mind in this scenario.
“Typically, these types of investments would include high interest and bonus interest savings accounts, term deposits and government bonds, if prepared to collect coupon payments and hold to maturity,” he says.
In three to five years
You have a little more room to play here, but still not a lot.
“You’re probably opening up a bit more in terms of adding growth,” says Edwards. “With three to five years, you would start increasing the growth allocation towards 50 per cent, but you’d try to diversify it as much as possible.”
That is, you’re not putting it all into just Australian banking shares, or US tech shares.
“Especially if the amounts are smaller, in terms of the regular savings that you’re putting into your investments, the easiest way to diversify would be to track an index and that’s the most cost-effective as well. Something like [an ETF tracking the ASX or the S&P500] is something we’d look at, or a diversified growth ETF that might mix the different indices as well.”
For example, ETF providers such as Vanguard offer products based on risk tolerance. Vanguard’s diversified conservative index ETF is described as medium risk, with a three year-plus timeframe.
Its diversified balanced ETF is also medium risk, but has a timeframe of five years-plus.
Others, such as its diversified growth ETF are considered high to very-high risk, and so it recommends holding them for at least seven years.
In 10 years
It’s not uncommon for Edwards to meet clients who want to buy further than five years out, particularly if they want a house rather than a unit, or they have quite a specific property goal.
For that saver, the first step is building up a three- to six-month buffer of living expenses. This is because these savers will invest much more in growth assets, such as shares, which they don’t want to draw down upon for a long time.
“Once that buffer is built, it’s about deploying 70 to 80 per cent of their wealth into growth assets. The rest will be in cash or fixed income,” says Edwards.
Those growth investments will still be in broad ETFs or index funds.
You have a bit more time now, so you can afford to take more risk as you have longer for the market to recover, agrees D’Souza.
“This portfolio is mainly growth-oriented with increased exposure to equities, global equities, and thematic plays.
“Given the higher risk, investors will likely use active ETFs and leverage the expertise of a financial adviser or fund manager to actively manage and adjust the portfolio exposures to increase returns and actively manage the risk,” he says.
If you’ve got a 10-year timeframe, you may consider adding an element of leverage to your investment strategy.
ETF provider Betashares launched a suite of products this year called Wealth Builder ETFs. These products track an index and are leveraged at a range of 30 to 40 per cent, meaning that for every $100 invested, the investor is granted $143 to $167 worth of exposure to the related index.
Betashares says $10,000 invested in the ASX200 from September 2010 to March 2024 would have grown to $30,400, but if that same sum was leveraged at a loan-to-value ratio of 30 to 40 per cent, it would have grown to $37,400.
But, notes Edwards, any time you introduce gearing, you increase risk. “That would be something where you only put in as much as you are comfortable to lose, over that short-term period,” she says.
How do I split it?
It’s not a simple matter of transferring, say, half of your savings into ETFs in one fell swoop, says Edwards.
Instead, you need to figure out what you’re trying to achieve for your deposit and then work backwards.
She gives this example: “Let’s say the starting point is $50,000 and the target is $100,000 deposit and the timeframe is five years – to save the $50,000 you would need to put aside about $192 per week into a savings account.
“A way to potentially grow your savings would be to invest a portion of these funds, keeping sufficient funds as an emergency buffer. We typically target three to six months.
“If your annual living expenses are $60,000, keep $30,000 as your buffer and start your investment with $20,000 and then with your regular savings, direct 50 per cent to savings and 50 per cent into investments.”
If you’re starting with $100,000, and plan to invest a larger amount, say $70,000, she says it’s worth considering dollar cost averaging over four months (so $17,500 in each instalment) to minimise market timing risk.
“We would usually look at dollar cost averaging between three and six months depending on the amount invested and your comfort level. Usually, the more to invest, but less familiar with investments would take over a longer period.”
Although she’s used a five-year timeframe, she says this buyer would have to be comfortable extending their purchase date if markets were to drop and fail to recover within that span.
“The big question [for people trying to save a deposit is] what is the timeframe and what are you looking at to buy?” Edwards says.
“The answers to those questions will help guide us around what’s reasonable, and what might require a little bit more work.”
Consider topping up your super because – after reducing your mortgage – it’s the most tax-effective structure for your money. And super is not just for high-income earners. Low-income earners may receive a top-up from the government after tax time of up to $1000.
Concessional contributions
Pre-tax contributions (concessional contributions) provide the opportunity to grow your retirement savings while reaping tax benefits along the way.
While the greatest benefit goes to people earning $190,000 to $250,000, those earning up to $37,000 who derive at least 10 per cent of their income from employment or business receive a low-income super tax offset payment of up to $500. It effectively refunds the 15 per cent tax paid on their super contributions.
The concessional contributions cap is $30,000, up from $27,500 in 2023-24.
The superannuation guarantee (SG) rate increased to 11.5 per cent on July 1, 2024. So, the opportunity for wage earners to make increased voluntary pre-tax contributions during this financial year is partly absorbed by the increase in their employer’s compulsory contributions.
From July 1, 2025, the SG rate rises to 12 per cent.
If you’re aged 67 to 74 and wish to claim a tax deduction for a personal contribution, you must meet the work test – 40 hours of gainful employment in 30 days.
If you can’t meet this test, but met it in 2023-24 and had a total superannuation balance below $300,000 at June 30, 2024, then you may contribute under the “work test exemption” provided you haven’t used this exemption before.
Generally, you have until 28 days after the end of the month in which you turn 75 to contribute.
Catch-up concessional contributions
If you didn’t use the full $27,500 concessional contributions cap in each of the last three financial years (or the $25,000 cap in the two years before that), then any unused amounts may be contributed this year, giving you a bigger deduction and tax saving.
Do this by making a larger personal contribution and claiming it as a tax deduction, or increasing salary sacrifice contributions.
But the catch is your total superannuation balance must have been less than $500,000 at June 30, 2024.
Unused cap amounts can be carried forward for up to five years, so this financial year is the last year to use any unused amount from 2019-20 – use it or lose it.
For some people, it may mean a tax deduction of up to $162,500. And for SMSF members able to use what is called a contribution reserving strategy and make a double contribution in June 2025, it could be as high as $192,500.
Using unused cap amounts can be extremely useful where you need to make a large one-off contribution to reduce capital gains tax arising from, say, the sale of an investment property.
Non-concessional contributions
The non-concessional (after tax) contributions cap is $120,000.
Anyone under 75 – whether working or fully retired – can make an after-tax contribution provided their total superannuation balance was less than $1.9 million at June 30, 2024.
If you haven’t triggered the bring-forward rule in the last two financial years and were under 75 at July 1, 2024, you may contribute up to $360,000 provided your total superannuation balance was less than $1.66 million at June 30, 2024, and up to $240,000 if it was $1.66 million to less than $1.78 million.
So, check your contributions since July 1, 2022. Look out for any excess concessional contributions not withdrawn from super as they count as non-concessional contributions and may have caused you to inadvertently trigger the bring-forward rule – a trap for the unwary.
Downsizer contributions
From age 55, you may be eligible to make a downsizer contribution of up to $300,000 ($600,000 for a couple) where you sell a home that you or your spouse owned for at least 10 years and contribute the proceeds within 90 days of settlement.
A downsizer contribution allows you to boost your super even if you’re otherwise ineligible to contribute due to age or total superannuation balance – you can contribute even if you’re aged 75 or more or have $1.9 million or more in super.
Other contributions
If your income will be less than $45,400 with at least 10 per cent of it coming from employment or business, then consider contributing $1000 to get a $500 top-up from the government – free money. But you must be under 71.
The co-contribution progressively reduces where you earn between $45,400 and $60,400.
You could make a contribution for your spouse provided they’re under 75.
If your spouse earns less than $37,000 and you contribute up to $3000, you can claim an 18 per cent tax offset – a benefit of up to $540. The tax offset progressively reduces where they earn between $37,000 and $40,000.
Boosting your spouse’s super while getting a tax benefit in the process is a win-win situation.
If you’re an eligible small business owner selling your business or an active business asset, don’t overlook the opportunity to make a CGT cap contribution of up to $1.78 million.
And if you’re using super to save for your first home, a voluntary contribution of up to $15,000 will help you get to the maximum releasable amount of $50,000 under the First Home Super Saver Scheme quicker – it takes years to get the greatest benefit from the scheme.
Starting a super pension
If you’re looking to start your first pension, the limit on how much you can transfer into it – the general transfer balance cap – is $1.9 million.
On July 1, this cap may increase to $2 million depending on movements in the CPI – meaning you could get more into the tax-free retirement phase.
So, if you’re going to be limited by this cap (which also affects how much you can receive by way of a death benefit pension when a loved one dies), you may want to hold off starting a pension – other than a transition to retirement pension – until then.
If you started a pension before July 1, 2024, your transfer balance cap will be less. You can obtain it from ATO Online via myGov.
Should you require more income than the requisite minimum, consider taking it as a lump sum withdrawal – partial commutation – because it helps your transfer balance cap.
Now is an ideal time to plan to get ahead of the game before tax time in June, which will be upon us before you know it.
Change is an inevitable part of any organization’s growth and success. Whether it’s adopting new technology, restructuring teams, or shifting strategies, professionals often lead change initiatives with the goal of improving efficiency, productivity, or innovation. However, one critical aspect is frequently overlooked—the emotional impact change has on individuals.
In the rush to implement change effectively, many professionals focus on the technicalities: updating systems, revising processes, and aligning resources. While these elements are important, they often fail to consider the human element—the fears, uncertainties, and emotional responses that accompany any transition. This oversight can lead to resistance, disengagement, and a lack of support for the change initiative.
The Emotional Impact of Change
Humans are inherently resistant to change, particularly when it’s unexpected or feels imposed. For many, change represents uncertainty, and uncertainty triggers fear. Will the change make their jobs harder? Will they lose their sense of security? Will they be left behind? These are just some of the questions that may arise in people’s minds.
Even well-intentioned and strategically planned changes can be met with resistance if the emotional side is ignored. For example, a new software system may promise to improve productivity, but employees may feel overwhelmed by the learning curve. Similarly, a restructuring effort designed to streamline operations may leave staff members worried about job security, despite no official announcements about layoffs.
This emotional turmoil can manifest in various ways—stress, frustration, disengagement, or even sabotage of the new initiatives. People may go through a psychological cycle similar to the stages of grief: denial, anger, bargaining, and acceptance. When these feelings aren’t addressed, they can slow down the change process, erode trust in leadership, and ultimately undermine the success of the initiative.
The Mistake: Focusing Solely on the Technical Aspects
One of the most common mistakes professionals make when leading change is overemphasizing the technical side and underestimating the emotional side. When leaders concentrate on the logistical elements—such as timelines, budgets, or new tools—they may assume that people will naturally embrace the change if it’s presented as the best solution.
While these technical factors are important, they aren’t enough on their own. If the emotional responses to change are not addressed, employees may feel alienated, ignored, or unsupported. This can lead to a lack of trust in leadership, decreased morale, and ultimately, failure to achieve the desired outcomes.
Moreover, professionals may inadvertently communicate change in a way that seems top-down or impersonal, rather than fostering a sense of involvement and shared purpose. Without an emphasis on clear, empathetic communication and active listening, employees may feel disconnected from the goals of the change.
How to Avoid This Mistake: Leading Change with Emotional Intelligence
To avoid the mistake of overlooking the emotional side of change, leaders should integrate emotional intelligence into their change management strategies. Emotional intelligence (EQ) is the ability to understand, manage, and influence emotions—both your own and those of others. In the context of change, high EQ can be a game-changer in guiding people through the transition.
Here are some key strategies for addressing the emotional side of change:
1. Communicate Transparently and Frequently
Effective communication is crucial during times of change. Leaders should clearly explain why the change is happening, how it will impact employees, and what the expected outcomes are. This transparency helps alleviate anxiety by removing the uncertainty surrounding the change.
Regular updates and open channels for feedback are also essential. When people feel heard and informed, they’re more likely to trust the process and embrace the change.
2. Acknowledge the Emotional Impact
It’s important to acknowledge that change is emotional. By recognizing the concerns and feelings that employees may have, leaders create a space where people feel understood. Empathy is a powerful tool—it fosters trust and collaboration.
Leaders can also create support systems such as mentoring, coaching, or counseling services to help individuals cope with the emotional challenges of change.
3. Involve Employees in the Process
People are more likely to embrace change when they have a sense of ownership. Involving employees in the planning and implementation stages can ease resistance and create a sense of partnership. When employees are given a chance to voice their opinions and contribute to the change, they are more invested in its success.
4. Provide Training and Support
Offer training sessions, resources, and guidance to help employees navigate the change. This reduces fear by giving individuals the tools they need to succeed in the new environment. The more confident employees feel, the more likely they are to support the change.
Change is challenging, but it’s also an opportunity for growth. Professionals who fail to consider the emotional side of change risk sabotaging their own efforts. By leading with empathy, communicating transparently, and involving employees in the process, professionals can guide their teams through change more effectively. When emotional and technical aspects are balanced, change becomes not just a transition—but a transformation that employees can embrace and thrive within.
Human decision-making often hinges on two powerful yet distinct forces: instinct and intuition. While they may seem similar, they originate from entirely different aspects of our being. Understanding these forces not only sheds light on our behaviors but also empowers us to make more informed and balanced decisions. Here, we’ll explore five key distinctions between instinct and intuition, highlighting how each plays a unique role in our lives.
1. Origin: Nature vs. Experience
At its core, instinct is a biological inheritance. It is hardwired into us to ensure survival, such as the instinct to pull our hand back from a hot stove or the fight-or-flight response to danger. These responses are embedded in our DNA and shared across species.
In contrast, intuition stems from subconscious processing of our accumulated experiences and knowledge. It is not something we are born with but something we develop over time. For example, a seasoned entrepreneur might “just know” when a business deal feels off. That gut feeling comes from years of learning, pattern recognition, and subconscious analysis.
2. Consciousness: Automatic vs. Awareness-Driven
Instinct operates on autopilot, bypassing conscious thought entirely. It is an immediate, automatic reaction to stimuli, ensuring quick responses in critical moments. For example, flinching when something suddenly moves toward you is an instinctive response.
On the other hand, intuition involves subtle awareness. It is not as immediate as instinct and requires a moment of internal processing. Intuition often manifests as a quiet whisper or a gut feeling that guides decision-making. While it may not demand conscious thought, it is deeply influenced by our subconscious mind and emotional intelligence.
3. Universality: Shared vs. Personal
Instincts are universal across species. They are the same for everyone and follow predictable patterns, such as the maternal instinct to protect offspring or the instinct to seek shelter during a storm. These behaviors are consistent because they are evolutionarily programmed for survival.
Intuition, however, is highly personal. It varies greatly from person to person, depending on their individual life experiences, knowledge, and perceptions. For instance, a musician might intuitively recognize the right note to play in a melody, while a chef might instinctively know when a dish needs more seasoning.
4. Complexity: Simple Reactions vs. Holistic Insights
Instinct is straightforward and specific. Its simplicity is its strength, as it enables quick and decisive actions. For instance, hunger is an instinctive drive that signals the need to eat, ensuring we sustain ourselves.
In contrast, intuition is more complex and multi-faceted. It integrates diverse pieces of information—sometimes without us realizing it—into a cohesive insight. Imagine walking into a room and instantly sensing tension between people. This intuitive awareness arises from subtle cues like body language and tone of voice, processed subconsciously into a holistic understanding of the situation.
5. Timeframe of Development: Innate vs. Learned
Instinct is present from birth or develops naturally without the need for learning. A baby instinctively cries to signal discomfort, and animals instinctively know how to hunt or migrate. These behaviors require no training.
Intuition, by contrast, is cultivated over time. It grows stronger with experience and learning. For instance, a firefighter develops an intuitive sense of danger in a burning building through years of exposure to similar situations. This ability is not innate but honed through practice and reflection.
Bringing It All Together
While instinct and intuition often work in tandem, understanding their differences can help us use them more effectively. Instinct is our primal safeguard, reacting quickly to protect us from harm. It keeps us grounded in the physical world. Intuition, on the other hand, is our subtle guide, offering deeper insights that draw from our personal experiences and subconscious wisdom.
Imagine facing a critical decision. Instinct might urge you to flee a threatening situation, while intuition could provide nuanced guidance, helping you navigate the challenge more strategically. Recognizing when to rely on instinct and when to trust intuition is a skill that can transform how we approach life’s complexities.
By decoding these natural forces, we gain the ability to align with both our biological heritage and our learned wisdom, creating a balance between survival and self-awareness. Instinct keeps us alive, but intuition helps us thrive.
Which will you listen to today—nature’s reflex or the mind’s wisdom?
