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.

Markets adjust quickly to new information. Share prices move, bond yields shift and currencies fluctuate.

Even when events occur overseas, they can influence:

• Superannuation balances

• The ASX

• Borrowing costs

Market fluctuations are a normal feature of investing — not a signal that something is broken.

History suggests that investors who remain disciplined and aligned to a long-term strategy are generally better positioned than those who react emotionally to headlines.

That doesn’t mean ignoring risk.
It means structuring for it.

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. Over the past couple of weeks this has climbed to around $1.98 per litre nationally, with many major cities now seeing prices above $2.00 per litre.

When conflict escalates in major oil-producing regions, oil markets often react quickly. Operating in those areas becomes riskier — workers, shipping routes and insurers all face higher uncertainty — which can slow production and transport.

Fuel is one of the largest operating costs for transport companies, farmers and logistics providers. As those costs rise, they can gradually flow through to the price of groceries and other everyday goods.

In Australia, food often travels thousands of kilometres from farm to distribution centres and supermarkets — which means transport costs play a significant role in what we ultimately pay at the checkout.

 

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 can accumulate — but only for a limited time.

This can be particularly valuable if:

• Your income has increased recently

• You’ve received a bonus

• You’ve sold an asset

• 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.

You may have more room to contribute to super — and reduce tax — than you realise.

 

Interest Rates & Staying Flexible

While markets respond to global developments, borrowing costs are influenced by both local and international conditions.

Strength overseas and ongoing global uncertainty can affect interest rate expectations here in Australia.

For households with mortgages or investment loans, two practical questions matter:

• Are repayments manageable if rates remain higher for longer?

• Is there an appropriate buffer in place?

For business owners, flexibility in lending structures and access to liquidity become increasingly important during uncertain periods.

Preparation isn’t about predicting the next rate move — it’s about ensuring your cash flow can absorb change without creating stress.

 

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 only when it is sold.

However, the outcome depends on the property’s history.

If the property was your parent’s main residence at the time of death, you may be eligible for the main residence exemption — commonly if sold within two years.

If it was previously used as a holiday home or investment property, only part of the gain may be exempt.

If it was never their main residence, CGT may apply to the full capital gain when sold.

Importantly, the cost base resets to the market value at the date of death — not what your parent originally paid.

Deciding whether to keep or sell an inherited property should involve both emotional and tax considerations.

 

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.

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 frequently established at one point in time and then left unchanged — even as income, debt levels and responsibilities evolve.

The purpose of cover isn’t to expect something will go wrong.
It’s to reduce financial disruption if it does.

Reviewing life, TPD, trauma and income protection periodically helps ensure cover remains aligned with your circumstances.

If your income paused unexpectedly, would your current structure provide space to adjust — or immediate pressure?

 

Looking Ahead

Global events will continue.
Markets will continue to fluctuate.
Interest rate expectations will change.

The objective isn’t to predict them.
It’s to ensure your financial plan doesn’t depend on getting those predictions right.

If it has been some time since your last review — or if recent news has prompted questions — we’re always happy to talk things through.

One simple question worth asking right now 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.

Warm regards,
The Lakeside Financial Team