February Update | Planning, Super and Market Insights
RBA Increase
The Reserve Bank of Australia has announced a 0.25% increase to the cash rate, raising it from 3.60% to 3.85%.
This is good news for retirees and investors with income-focused investments, as higher rates can improve returns on cash and defensive assets.
However, it is more challenging for households with home loans, particularly those on variable rates, as repayments are likely to increase.
Message from the Team
The start of the year often gives us a little breathing space.
After a full year behind us, it is a moment to pause, reflect, and gently reset.
As we step into the new year, many people are thinking about what really matters.
Family. Security. Simplicity.
This early part of the year is not about rushing decisions. It is about making sure the foundations are right, so when life changes, you are prepared rather than reactive.
This month, we are sharing insights around inheritance and super, along with a balanced look back at what the markets taught us in 2025. Not predictions. Just perspective to help you move forward with confidence.
Our focus is on helping you understand some of the quieter details that can make a meaningful difference over time.
Feature Insight: Inheritance, Super & the Hidden Tax Many Families Miss
In Australia, we often hear that there is no inheritance tax.
And technically, that is true.
However, superannuation can be taxed when it is paid to non-dependants, and this is something many families are unaware of.
If super is passed to a non-dependant beneficiary, such as financially independent adult children, the taxable component of super can be taxed at up to 17%, including the Medicare levy.
Importantly, superannuation does not automatically follow your Will. It sits outside your estate unless it is carefully structured. This means beneficiary nominations and planning play a critical role.
As super balances grow, the impact of this tax becomes more significant. Without the right advice, families can unintentionally lose part of what was meant to be a lasting legacy.
To put this into real-world context, we recently reviewed a client with approximately $4 million in superannuation. Without the right structure, this would have resulted in a tax bill of around $450,000 being paid by his beneficiaries.
Fortunately, with the right planning and superannuation structure already in place, this tax outcome has been avoided entirely.
It is a clear example of how thoughtful planning today can protect what you have worked hard to build.
A Global Perspective
Looking overseas helps put this into context.
In the United Kingdom, inheritance tax can apply at up to 40% above certain thresholds, which is roughly equivalent to around $700,000 AUD.
In the United States, large estates may face federal estate taxes, with additional state-based taxes in some cases.
Australia does not have a formal inheritance tax, but superannuation taxation is our version of the fine print. It is quieter, but no less important.
The common thread globally is simple – the more proactive the planning, the fewer surprises for loved ones later.
Market Update: What 2025 Taught Us
January is a valuable time to look back, rather than rush to look forward.
Throughout 2025, markets once again showed how differently even the world’s largest and most recognisable companies can perform over the same period.
Global leaders and how differently they performed in 2025
Among the world’s largest companies, outcomes varied widely.
• Alphabet (Google) was the standout performer for the year, rising approximately +64%, supported by strength in advertising, cloud services, and growing confidence around AI.
• NVIDIA delivered a strong return of around +30%, reflecting ongoing demand for AI-related hardware and data-centre infrastructure.
• Apple recorded a more moderate gain of approximately +11%, driven by steady device sales and continued growth in services revenue.
• Meta Platforms rose by around +7%, highlighting that even highly visible technology leaders can deliver more subdued outcomes within the same year.
These figures reinforce an important point.
Even at the very top of global markets, returns can vary significantly over the same period.
Global companies that faced headwinds
At the same time, several well-known global companies experienced a more challenging year relative to broader market indices.
Companies such as Tesla, Nike, and Disney faced a combination of margin pressure, shifting consumer demand, and increased competition. In parallel, parts of the traditional energy and industrial sectors delivered flatter outcomes as commodity prices and demand expectations fluctuated throughout the year.
While these businesses remain globally significant, their experience in 2025 served as a reminder that size and brand recognition alone do not guarantee strong short-term returns.
Australian market: a mixed year across familiar names
Closer to home, the Australian share market told a similarly nuanced story.
Among the largest ASX-listed companies, performance across 2025 varied meaningfully. Some businesses delivered steady or positive outcomes, particularly those with resilient earnings or global exposure. Others faced headwinds from higher interest rates, cost pressures, and shifts in consumer and commodity demand.
Even within Australia’s most familiar names, outcomes differed depending on sector exposure, balance sheet strength, and broader economic conditions.
The key takeaway from 2025 was not about picking winners or avoiding losers.
It was about diversification, portfolio structure, and understanding the role each investment plays within a broader strategy.
Strong years highlight opportunity.
More difficult periods reinforce discipline.
Both are essential for long-term outcomes.
Client Story of the Month
Recently, one of our senior advisers, Tristan, had a routine check-in with a long-standing client in his early 50s. During the conversation, the client mentioned he had undergone a cancer-related scan. He had been reassured that the result was benign and had been told there was nothing to worry about.
Because of his experience, Tristan knew this was still worth looking into further. The client held a trauma insurance policy, and while the diagnosis was not something the client felt concerned about, it turned out the condition met the policy’s definition for a claim.
With the client’s permission, we reviewed the policy and commenced the claims process.
As a result, the client received a $200,000 trauma benefit.
This outcome came from a simple conversation, ongoing adviser involvement, and a deep understanding of how insurance policies work in real life.
It is a reminder that the value of advice is often not just in setting things up, but in being there when it matters most.
The Lakeside Lens
One of the most consistent lessons from both markets and estate planning is this:
Performance matters.
But structure matters more.
Markets will always produce winners and laggards.
What determines long-term outcomes is how your investments, superannuation, and estate planning work together.
How diversified your portfolio is.
How your super benefits will be taxed.
Who ultimately receives what, and how.
These details rarely feel urgent.
Until markets shift or life changes.
The Lakeside Lens is about stepping back and asking one simple question:
Does my financial strategy still reflect my intentions today?
That question alone often uncovers opportunities for clarity, efficiency, and peace of mind.
Additional Services
As Lakeside continues to grow, our focus remains on supporting clients across more of life’s important decisions, not just financial ones.
We are pleased to now offer Conveyancing and Litigation services as part of our broader Legal offering.
Whether you are buying or selling property, navigating a dispute, or simply seeking clarity before taking the next step, our team can help ensure these matters are handled thoughtfully and with care.
We can also assist with Private Health Insurance reviews, helping clients understand their options and ensure their cover remains appropriate as circumstances change.
As always, our role is to sit in the middle and help bring the right expertise together, so nothing important is overlooked.
Looking Ahead
Many people only review their superannuation, investments, and estate planning after a major life event or market shock. Often, that is when options are more limited.
A thoughtful review now can help ensure your structures remain aligned, your risks are understood, and your family is protected.
If you would like to discuss how your super, investments, and broader financial strategy fit together, our team is here to help.
Warm regards,
The Lakeside Financial Team