March Update | Super Strategies, Global Events & Staying Prepared
RBA Increase
The Reserve Bank of Australia has announced a further 0.25% increase to the cash rate, bringing it from 3.85% to 4.10%.
This is positive for retirees and investors with income-focused investments, as higher rates can continue to 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 further.
Message from the Team
Some months remind us how connected the global economy really is.
Right now, global headlines are constant — conflict overseas, political tension between major economies and changing economic conditions.
When uncertainty rises, it’s natural to wonder whether something needs to change.
But for many people, the discomfort isn’t market fluctuations themselves.
It’s the question of whether their financial plan is positioned appropriately for environments like this.
We cannot control global events.
But we can control how intentionally we prepare.
Preparation doesn’t remove uncertainty.
But it reduces the chance that uncertainty forces reactive decisions.
Market Update
Periods of global conflict and political tension often lead to short-term market fluctuations, as investors respond quickly to new information.
Even when events occur overseas, they can influence superannuation balances, the ASX and borrowing costs here in Australia.
Market fluctuations are a normal feature of investing — which is why maintaining a disciplined, long-term strategy is often more effective than reacting to short-term headlines.
Energy Prices & Everyday Costs
One of the most immediate ways global conflict can affect Australia is through fuel prices.
In late February, the national average petrol price was around $1.73 per litre. In recent weeks this has risen to around $1.98 nationally, with many cities now seeing prices above $2.00 per litre.
When conflict escalates in major oil-producing regions, operating in those areas becomes riskier for workers, shipping routes and insurers, which can slow production and transport.
Because fuel is a major cost for transport companies, farmers and logistics providers, higher prices can gradually flow through to groceries and other everyday goods.
Interest Rates & Staying Flexible
Borrowing costs in Australia are influenced by both local conditions and global economic trends.
For households and businesses with loans, the key question is whether repayments remain manageable if rates stay higher for longer.
The goal isn’t to predict the next rate move — it’s to ensure your cash flow can absorb change without creating stress.
Feature Insight: Super Contributions Before 30 June – What Many People Miss
As we approach the end of the financial year, there is one area many Australians overlook.
If your total super balance is under $500,000, you may be able to use unused concessional contribution caps from the previous five financial years.
Many people assume once the annual cap is used, that’s it. In reality, unused amounts from the previous five financial years may still be available to contribute.
This can be particularly valuable if:
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Your income has increased recently
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You’ve received a bonus
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You’ve sold an asset
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Your business has had a stronger year
Strategically timing additional concessional contributions may reduce taxable income while strengthening long-term retirement savings.
Unused caps expire on a rolling basis, so understanding what is available before 30 June matters.
Because unused caps expire over time, a quick review before 30 June may reveal additional contribution room.
When Structure Becomes Visible: The Tax Side of Inherited Property
Planning often becomes most visible when assets pass between generations.
There is no tax when you inherit a property. Capital gains tax (CGT) is generally triggered when the property is sold.
If the property was your parent’s main residence at the time of death, you may be eligible for the main residence exemption, particularly if it is sold within two years.
However, if the property was previously used as a holiday home or investment property, only part of the capital gain may be exempt.
Importantly, the property’s cost base resets to its market value at the date of death, not what your parent originally paid.
Inherited shares work differently. In most cases, you inherit the original cost base, and CGT applies when the shares are sold. If held for more than 12 months, the 50% CGT discount is generally available.
Deciding whether to keep or sell an inherited property should involve both emotional and tax considerations.
Reviewing this early can help avoid unintended tax consequences.
Client Story of the Month
Advice often shows its value in unexpected moments. This recent client situation is a good example.
Recently, one of our Senior Advisers, Wayne, was conducting a routine insurance review with a long-standing client.
As part of the conversation, Wayne asked whether there had been any changes to her health since their last review. She mentioned that she had been diagnosed with invasive breast carcinoma in March 2024 following a scan — but hadn’t taken any further steps, as she assumed it wouldn’t meet the policy definition.
The diagnosis had occurred nearly two years earlier.
After carefully reviewing the policy, it became clear that the condition was covered under her existing Trauma Insurance.
We revisited the policy details together and lodged a claim.
The client has now received a claim benefit of $527,000 — all from a routine review conversation and something she initially believed wasn’t eligible to claim.
What stands out is not just the financial outcome, but how easily it could have been overlooked.
It began with a simple question.
It’s a reminder that advice isn’t only about setting things up.
It’s about ongoing conversations — and recognising opportunities that might otherwise go unnoticed.
The Lakeside Lens
Protection as Part of the Structure
When markets feel uncertain, investment performance often takes centre stage — but financial resilience also depends on protection.
Insurance is often established at one point in time and then left unchanged, even as income, debt and responsibilities evolve.
If your income paused unexpectedly, would your current structure provide space to adjust — or immediate pressure?
Looking Ahead
Global events will continue, markets will fluctuate and interest rate expectations will change.
The goal isn’t to predict what happens next — it’s to ensure your financial plan can handle different outcomes.
If it has been some time since your last review, one simple question worth asking is:
“Are we still structured the way we should be for the current environment?”
Good planning doesn’t remove uncertainty — it helps ensure uncertainty doesn’t dictate your decisions.
If you’d like to discuss your own position or review your current strategy, you’re welcome to get in touch.
Warm regards,
The Lakeside Financial Team