In this episode of Wealth Coffee Chats, Alex dives into a rapid-fire update on the Australian economic landscape and two significant opportunities for investors to protect and grow their wealth as we head toward the end of the financial year.
From the latest “sticky” inflation numbers to a potential game-changing stamp duty exemption in South Australia, this session is all about staying proactive rather than reactive. We also break down the math on why income protection is one of the most efficient tax-planning tools in your kit.
What We Covered:
• The Inflation Sticky Point: January 2026 numbers are in at 3.8%. Alex discusses why this remains outside the RBA’s target band and what it means for your mortgage and investment strategy in the coming months.
• South Australia’s $2M Property Play: A deep dive into the proposed “Downsizer Exemption.” If you are over 60, you could potentially save over $100,000 in stamp duty when moving into a new build.
• Tax Planning & Cash Flow Oxygen: Why waiting until June to find deductions is a mistake. We look at the “Net Cost” of income protection across different tax brackets and why it’s a “must-have” for family breadwinners.
• Event Update: A quick shout-out to the Melbourne and Brisbane mentoring pop-ups and a look ahead to the upcoming 4-day “Your Exit Plan” event in Melbourne
Takeaways
1. Watch the RBA Pause: While inflation at 3.8% is higher than the 2–3% target, the recent rate hikes need time to filter through the economy. Expect the RBA to hold steady in the short term as they monitor the lag effect on consumer spending.
2. Strategic Downsizings Can Save Six Figures: The South Australian proposal for over-60s is a massive incentive. By purchasing an off-the-plan or new-build property up to $2M, eligible residents can bypass stamp duty—effectively keeping that “dead money” in their own pockets for retirement.
3. Income Protection is a Dual-Purpose Tool: It isn’t just “insurance”—it’s a sophisticated tax play. Because premiums are generally tax-deductible, high-income earners (45% bracket) can essentially have the government subsidize nearly half the cost of protecting their most valuable asset: their ability to earn.
