Page 13 - FWP Wealth Adviser newsletter - July 2025: Issue 116

ISSUE 116
JULY 2025
Ask a also have flow-on effects to broader sectors such as agricul-

ture, mining and manufacturing and could reduce dividends
Q&A: Question or future growth. However, markets respond to more than

just headlines.
Question 1: They also consider how diversified a company is, the
My friend warned me about gifting too much to my family broader economic outlook and whether the impact is ex-
and how it could affect my pension. How do Centrelink’s pected to be short or long term. The effects may also differ
gifting rules work? depending on whether you’re invested in large, diversified
Centrelink allows you to gift money or assets, but there firms or smaller companies with more specific exposure. A
are limits on how much you can give before it impacts your well-diversified portfolio can help protect against these risks.
Age Pension entitlements. You can gift up to $10,000 in a Your financial adviser can help assess whether your invest-
financial year with a maximum of $30,000 over five rolling ments remain appropriate in light of global developments.
years. Anything above this is considered a “deprived asset”
and is still counted under the assets and income tests for Question 3:
five years from the date of the gift. This could reduce your I’ve inherited a property from my uncle. Are there any
Centrelink payments or disqualify you temporarily. strategies I should consider before deciding whether to sell it?
It’s especially important to plan if you’re considering
helping children with house deposits, paying school fees or Inheriting a property can open up different financial
transferring ownership of property. Gifting wisely can still pathways depending on your broader goals. Before making
be part of a solid estate or financial plan, but understanding any decisions about selling, it’s important to consider how
the rules ensures you don’t unintentionally reduce your the property fits into your overall financial strategy. The
entitlements. Your financial adviser can help you assess the property may qualify for a capital gains tax (CGT) exemption
implications and structure support for your family without if it was your family member’s principal residence at the
compromising your own financial security. time of death and sold within two years.
However, if you plan to hold onto it, it could provide
Question 2: rental income, contribute to wealth building or even be
I read an article about new tariffs being placed on used to fund retirement through downsizing or borrowing
Australian exports, in particular pharmaceuticals. How strategies. The property may also impact your Centrelink
could this affect the stock market and my investments?
Trade tariffs, particularly when imposed on major entitlements, estate planning or superannuation contri-
Australian exports like wine, beef or minerals, can impact butions. A financial adviser can help you weigh up the
the earnings and share prices of companies in those indus- financial implications of each option with your personal
tries. If key export markets become more expensive or less circumstances and long-term plans, and can coordinate
accessible, affected companies may experience lower profits with your accountant to ensure any tax considerations are
which can then weigh on their stock valuations. This may appropriately managed.

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

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