Stay up to date with what’s happened in the Australian economy and markets over the past month.

July provided some welcome signs for the Australian economy, with inflation easing more than expected last month, cooling bets of interest rate hikes in the short term.

Globally, shares delivered strong gains and Australian equities reached their highest level since early March.

However, risks  remain  elevated. Caution in US markets following the Federal Reserve’s decision to keep rates on hold tempered sentiment and served as a reminder of lingering inflation concerns.

Click here to view our update.

Please get in touch  if you’d like assistance with your personal financial situation.

Integrity One Wealth Advisers  Pty Ltd

It can feel as if artificial intelligence (AI) makes its way into almost every conversation, and especially for investors. From headlines about trillion-dollar technology companies to predictions that entire industries will disappear, we are being bombarded with AI news, forecasts and investment themes every day.

For investors, the challenge is in determining who will ultimately capture the value and how to avoid concentrating portfolios around a handful of highly publicised winners.

The most sensible response may be the least exciting: stay diversified, invest regularly and resist the temptation to chase the latest AI headline.

Beyond the AI giants

Much of the media attention has focused on the companies developing AI models and infrastructure. These include “The Magnificent Seven” firms such as Nvidia, Microsoft, Alphabet, Apple, Amazon, Meta and Tesla, which are investing hundreds of billions of dollars into AI-related infrastructure and services.

These companies have obviously benefited from the AI boom. Nvidia, for example, has become one of the world’s most valuable companies because its graphics processing units (GPUs) power much of the world’s AI computing capacity.

But successful investing rarely comes from simply identifying a major trend. The important question is who benefits most and for how long.

History shows that new technologies often create value far beyond the companies that invent them. Railways, electricity, automobiles and the internet all reshaped economies, but the eventual winners were not always the pioneers that first captured investors’ attention and there were casualties along the way.

Categorising AI

Investors can think of AI opportunities in three broad categories.

The first category is the direct AI beneficiaries such as semiconductor manufacturers, cloud computing providers, data centre operators and AI software developers. These are the companies building the infrastructure and tools that enable AI.

The second category includes businesses that successfully use AI to strengthen their competitive advantages. These companies may not be seen as AI businesses, yet they stand to benefit significantly through higher productivity, lower costs, improved customer experiences and new revenue streams.

Many established software companies fall into this category. Rather than being displaced by AI, they are incorporating AI capabilities into products that already benefit from large customer bases, trusted brands, proprietary data and high switching costs. They’re advantages that are often difficult for new competitors to replicate.

The third category includes businesses that indirectly benefit from AI-driven investment. Growing demand for data centres, computing power and electricity is creating opportunities for resource companies, energy infrastructure providers, network operators and industrial businesses.

Goldman Sachs estimates AI processing could account for approximately 28 per cent of data centre electricity demand by 2027, creating significant investment opportunities across energy generation, grid infrastructure and critical minerals.

Private equity and venture capital

Investors focusing solely on listed markets may be seeing only part of the AI story.

Beyond the listed market, many of the most innovative AI businesses remain privately owned. AI companies attracted almost half of all global venture capital funding in 2025, as investors backed startups developing applications in areas such as healthcare, robotics, autonomous systems, cybersecurity and enterprise software.

Private equity firms are also acquiring established businesses and using AI to improve operational efficiency, enhance customer engagement and reduce costs. In some cases, these productivity gains may become more valuable than the AI technology itself.

For investors with access to diversified private market investments, exposure to venture capital and private equity can provide participation in AI innovation beyond the listed market. However, these investments typically involve higher risk and reduced liquidity.

The risk of AI ‘roadkill’

Every technological revolution produces winners and losers.

During the internet boom of the late 1990s, many investors correctly identified that the internet would transform society. What they got wrong was assuming every technology company would prosper. Many failed.

As with every major technological shift, AI is likely to leave some casualties behind.

Businesses that rely on repetitive information processing, basic content creation or undifferentiated software solutions may find themselves under significant pressure. Companies whose products can be easily replicated by increasingly capable AI tools could see profit margins erode.

McKinsey estimates generative AI could ultimately create US$2.6 trillion to US$4.4 trillion of annual economic value globally. Yet its latest surveys suggest that while AI adoption is becoming widespread, many organisations are still struggling to convert experimentation into meaningful profits. For investors, that may be a reminder that identifying companies that can use AI productively could prove just as important as identifying the businesses developing it.

The challenge for investors is that identifying future casualties in advance is rarely straightforward. That’s why diversification remains so important.

Why diversification wins

The biggest investment risk may be in becoming overexposed to a small number of companies that seem to be unbeatable today.

Technology leaders change over time. Dominant businesses can be disrupted, regulatory environments can evolve and valuations can become detached from fundamentals.

Diversification acknowledges this uncertainty. Rather than attempting to predict the companies that will dominate the AI landscape a decade from now, diversified investors gain exposure across multiple sectors, asset classes and business models.

Some of the strongest beneficiaries may emerge from unexpected areas such as energy infrastructure, industrial automation, logistics, healthcare or specialised software. Others may come from venture capital and private equity portfolios that provide access to innovations before they reach public markets.

Diversification also helps investors resist the temptation to chase every new headline. In a rapidly changing AI landscape, spreading risk across sectors, asset classes and business models may prove more valuable than trying to pick every winner.

Integrity One Wealth Advisers  Pty Ltd

A range of superannuation changes that came into effect on 1 July 2026, are reinforcing the role of super as one of the most tax-effective investment structures available.

For many investors, it’s not simply that super remains attractive but that the rules continue to change. Understanding these changes can help ensure your strategy takes advantage of available opportunities while staying on track with your financial goals.

A changing tax environment

Outside of super, tighter rules around the use of discretionary trusts and closer scrutiny of income distributions have reduced some traditional tax planning flexibility. Combined with the ongoing treatment of capital gains, this has made tax outcomes in non-super structures less predictable for some investors. In contrast, superannuation continues to provide favourable tax treatment. This is a key reason why super is becoming increasingly important in long-term financial planning.

Payday Super – boost your retirement savings

One of the more practical changes is the introduction of Payday Super, which requires employers to pay super contributions at the same time as wages rather than quarterly. While this is primarily an administrative shift, it can have a real impact on individuals’ super balance. More frequent contributions mean compounding begins earlier. Over time, this could lead to improved retirement outcomes.

Higher contribution caps create more opportunities

From 1 July 2026, the concessional superannuation contribution cap (including employer contributions and salary sacrifice) increased to $32,500 from $30,000 in the 2025-2026 financial year.

Non-concessional caps have also increased, from $120,000 in 2025-2026 to $130,000 in the 2026-2027 financial year, enabling larger after-tax contributions. This can be particularly relevant for individuals who have accumulated savings outside super and wish to transfer funds into a more tax-advantaged environment.

Carry-forward and bring-forward rules

Two existing rules continue to offer significant opportunities when used effectively.

The carry-forward rule allows those with a total super balance below $500,000 on 30 June in the previous financial year to use unused concessional cap amounts from previous years. This can be especially beneficial for those with irregular income patterns, such as business owners or individuals returning to work after a break.

The bring-forward rule allows you to make several years’ worth of non-concessional contributions in one year, subject to eligibility criteria. This can be particularly useful when receiving an inheritance, selling an asset or restructuring investments.

Parental leave contributions

Another important development is the extension of super contributions to government-funded parental leave, introduced last year. It recognises the long-term impact that time out of the workforce can have on retirement savings, particularly for women. While the financial impact may appear modest in the short term, over time the effect of compounding can be meaningful.

Division 296 tax

One of the more widely discussed measures is the Division 296 tax, which applies an additional tax on earnings associated with super balances above $3 million.

While this affects a relatively small proportion of investors, it represents an important shift in the superannuation landscape. The measure is designed to target very large balances, with the objective of limiting the extent of tax concessions at higher levels of wealth.

Transfer Balance Cap increase to $2.1 million

The increase in the Transfer Balance Cap to $2.1 million is another positive development, particularly for those approaching or entering retirement.

This cap determines how much can be transferred into the tax-free retirement phase. An increase allows more capital to benefit from a zero per cent tax rate on earnings, enhancing after-tax income in retirement.

Bringing it all together

Superannuation continues to offer a compelling tax environment, particularly when compared with other investment strategies that are facing increased complexity and scrutiny.

Contribution caps, along with carry forward and bring forward rules, provide multiple pathways to build super balances over time. Changes such as Payday Super and parental leave contributions highlight the benefits of regular, ongoing investment into super and the power of compounding. While new measures such as Division 296 introduce additional considerations, they do not diminish the overall value of super for most investors.

Please get in touch if you’d like to discuss any of these superannuation options.

Integrity One Wealth Advisers  Pty Ltd

Retirement is an opportunity to assess where you live and how you want to live. 

Questions to help you decide where to live

Retirement may be a time to think about whether you want to stay where you are, downsize or move into a retirement home.

Your children may have moved out, and the family home now seems too big. Perhaps you no longer want to be responsible for running a house.

Or your health may not be as good as it used to be, and you need a bit more help. You might see an opportunity to reduce rent or loan payments.

Whatever your circumstances, you could consider your living arrangements by asking yourself some key questions, including:

• What is my present financial situation? (For example, do I own or rent, do I have debt, am I financially responsible for someone else?)
• How is my health now, and should I plan for future health care needs?
• Do I want to stay near family and friends?
• How much room do I need?
• What kind of lifestyle do I want?

If you own your home

Staying in your home

Staying in your own home, at least in the early years of retirement, has plenty going for it. You know your community and it might mean you stay close to family and friends. You are likely to have an emotional attachment to your home and the geography. Familiarity can be very comforting.

If this is your choice, things to consider include:

• Do you, or will you in the future, need renovations or upgrades to bathrooms, kitchens, or other areas of the house to make living easier? It might be replacing steps with ramps or installing more rails in the bathroom to help with your independent living.
• Do you need help with daily chores such as cleaning and shopping? The government provides services such as the Commonwealth Home Support Programme.
• Are you considering refinancing your home, or using your home equity, to help fund your retirement?

Some of these questions are complex and your decisions could affect your partner, family and anyone you live with. Consider speaking to us before you make big financial decisions.

Downsizing in retirement

There are many reasons you may consider downsizing, including being closer to health services, or if your home needs costly improvements.

Downsizing is also a way to free up cash for your retirement. But it does come with costs and may impact your Age Pension and government benefits.

Maureen and Gary downsize their home

With their five kids out of home, Maureen and Gary were starting to think four bedrooms and a big backyard was more than they wanted to maintain. They worked together to figure out their options. Using online tools and checking in with their super fund and bank, they looked at what they owned and what they might need when they stopped working. After weeks of discussion, they decided to sell their home and buy a smaller apartment with no stairs. Even after transaction costs, they felt they would be in a stronger position and better off financially and emotionally.

If you rent your home

Rent is a big, ongoing expense for many retirees. If you rent your home, think about whether you can afford the rent when you stop working. You may have less income in the future.

If the private rental market is too expensive, there are lower rent options. Community organisations sometimes offer cheaper rooms or units for retirees who do not own their home.

If you receive a Centrelink payment, you might be eligible for Rent Assistance.

For advice about staying in your rented home, contact your state or territory tenants union:

• Australia Capital Territory — Tenants’ Advice Service ACT
• New South Wales — Tenants NSW
• Northern Territory — Darwin Community Legal Service Tenants’ Advice Service
• Queensland — Tenants Queensland
• South Australia — RentRight SA
• Tasmania — Tenants’ Union of Tasmania
• Victoria — Tenants Victoria
• Western Australia — Tenancy WA

If you need help with housing or other support, see get help in retirement.

If you need to move into residential care

Help at home and aged care options

If you need help in your home, or can no longer live independently, the Australian Government provides a range of subsidised aged care services. There are also many privately run retirement homes and villages, but you pay the full amount yourself.

Before you sign up, check all the fees and charges, and how they may increase over time.

If you’re buying a unit in a retirement village, get advice. Make sure they have experience with retirement village contracts and the Retirement Village Code of Practice in the state or territory.

Key takeaways

• If you own your home, consider your wants with your needs – a different lifestyle, close to family, health needs – to free up your capital.
• If you rent, see if you’re eligible for rent assistance and include rent in your budget.
• Create a budget for ongoing household expenses, matching it to your income sources. Remember to include inflation (price rises) of products.
• If you’re looking to downsize, consider the costs involved to make sure you will be financially better off.

Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/plan-for-your-retirement/your-home-in-retirement
Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.
Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Integrity One Wealth Advisers  Pty Ltd

Integrity One Wealth Advisers  Pty Ltd

If you need help at home, the Australian Government provides a range of care services.

Where to start

The first thing to do is think about what you need. You might want to stay in your own home but need some help with domestic chores. Or you might be ready to start looking at options for longer-term residential care.

Talk to your family or friends about what you want. This will help you get the right care when the time comes.

Once you have an idea of your needs, contact My Aged Care. They will:

• check your eligibility
• assess your care needs
• assess your financial situation

It’s important to plan ahead, as this process can take time. There are waiting lists for some services.

To discuss your options, speak to an Aged Care Specialist Officer (ACSO) at a Services Australia service centre. To make a free face-to-face appointment, call 1800 227 475, Monday to Friday, 8am to 5 pm. Alternatively, you can contact us if you’re not sure where to begin.

Care and help at home

To help you stay in your own home for as long as possible, the government provides subsidised home care. This is to help with everyday tasks like shopping, cooking and transport, as well as with personal and nursing care.

There are two types of home care:

• entry level care — Commonwealth Home Support Programme for people who can manage but need support with a few tasks
• more complex care — Home Care Packages for people who need more support on an ongoing basis

What you pay

Costs for the Commonwealth Home Support program vary depending on the services provider. If you can afford to do so, for Home Care Packages you may have to pay:

• a basic daily fee — a standard amount that everyone has to pay
• an income-tested fee — an amount that will vary depending on your income and assets

If you can’t afford to pay, you may be able to get financial hardship assistance.

Residential aged care

If you can no longer live at home, you may choose to move to an aged care home (sometimes called a nursing home or residential aged care facility). Care is available 24 hours a day. This can be a short-term stay or a permanent move.

What you pay

If you can afford to do so, for government-subsidised aged care homes, you may have to pay:

• a basic daily fee — a standard amount that everyone has to pay
• means-tested fee — an amount that will vary depending on your income and assets
• accommodation payment — an amount for your room, based on its quality, location and features

The accommodation payment can be one of your biggest costs. You can pay this as a:

• bond or lump sum up-front, which is refundable (called a Refundable Accommodation Deposit, or RAD)
• daily amount (called a Daily Accommodation Payment, or DAP)
• combination of RAD and DAP

If you can’t afford to pay, you may be able to get financial hardship assistance.

Selling or keeping your family home

You may be thinking of selling the family home or using the equity in your home to pay the bond (RAD). Or maybe you’re wondering whether it’s better to rent it out to help pay the daily amount (DAP).

You have 28 days after you go into aged care to decide how to pay for your accommodation. You must pay the DAP until the RAD is paid:

• if you decide to pay a RAD within those 28 days, you have 6 months to pay the RAD
• if you decide to pay a RAD after those 28 days, it is due as agreed between you and the provider

You may need professional advice to work out whether selling or renting your home is the best option, so you can contact us for more information.

Either way, be aware that what you choose to do with the family home may affect the Age Pension assets test.

If you sell the home, its value will count towards the Age Pension assets test.

If you rent out the home, its value may count towards the Age Pension assets and income test, depending on when you moved into aged care.

If you keep the home without renting it out, it is exempt from the Age Pension assets test for two years from the date that you moved into aged care. (This may vary if you are, or were, a couple when you moved into aged care.)

Short-term help

Short-term help is available, either in your own home or in an aged care home. There are different types of care:

• transition care (or after-hospital care) — for when you’ve been in hospital and need help with your recovery
• respite care — for when you or your carer needs a break (for a few hours, a few days, or longer)
• short-term restorative care — for when you’ve had a setback and want to get your independence back

Private retirement accommodation

As well as government-subsidised aged care homes, there are many private retirement accommodation options. For this kind of accommodation, you pay the full amount yourself.

The Australian Competition and Consumer Commission has information about types and costs of retirement homes.

As you can see, aged care can be complex, so it is important to seek advice.

Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/manage-your-money-in-retirement/aged-care
Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.
Important
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Integrity One Wealth Advisers  Pty Ltd