Bonds are not usually the flashy upstarts of the investment world with their every move reported, like stocks.

But the Trump Administration’s extraordinary refashioning of world trade, with on-again off-again tariffs of eye watering amounts, has put bond markets in a similar position to share markets – in turmoil.

So, with the bond markets attracting more attention than usual, we take a closer look at the asset class.

What is a bond?

A bond is a bit like an interest-only loan and there are many different types of bonds available. A government (government bond), or sometimes a large company (corporate bond), issues bonds to investors to raise funds for infrastructure or, in the case of a company, for expansion.

Large institutional investors tend to favour some of the more complex types. Retail investors are more often interested in fixed-rate bonds, known as a fixed-income investment because of the regular payments made to the investor (or the coupon interest rate). The principal (called the face value) is repaid at an agreed date when the bond matures.

These bonds can also be traded on a secondary market by those who’ve chosen to sell their bonds before maturity. In this case, depending on the state of the markets and the economy, the amount they’re worth, or their capital value, may be higher or lower than the face value, which is fixed.

The most common fixed-rate bonds, issued by governments, are generally considered more stable. Nonetheless, all bonds are assigned a credit rating by independent rating agencies such as Standard & Poor’s or Moody’s.

Australia’s Commonwealth bonds, issued by the federal government, are AAA-rated reflecting strong fiscal management, economic stability and low default risk.

State governments and quasi-government organisations such as the World Bank also issue bonds. The risk level for this category of bonds can vary.

Large companies, looking to expand or start new projects, often use bonds as a way to raise funds. Corporate bonds generally pay higher interest but are considered slightly more risky.

How to buy bonds

Investing in bonds can help to diversify a portfolio and provide a steady stream of income but for those with no knowledge or experience of the market, it is important to get quality professional advice and speak to us.

For example, if you had been relying on the conventional wisdom that bond markets are often up when share markets are down, recent share market activity would have delivered a shock. The usual flight to safety from share price volatility to bonds did not happen in the United States where, for a time, both markets were falling.

While it is possible to buy bonds directly when there is a public offer, it can be difficult for smaller individual investors to participate because of the large minimum transactions required.

Instead, most retail investors look to bond funds, bond exchange traded funds (ETFs) or managed funds for exposure to the bond market. The variety of funds on offer can help to diversify a portfolio by giving access to a range of different markets.

What affects bond rates?

Interest rate movements directly affect bond prices on the secondary market.

When interest rates rise, bond prices fall because newly issued bonds will be at the higher rate making older bonds less attractive and reducing demand.

Conversely, bond prices rise when interest rates fall because new bonds will offer the lower rates meaning there will be higher demand for older bonds, driving their prices up.

Bond prices are also influenced by economic conditions and investor sentiment.

Rising inflation can cause bond prices to rise while strong economic growth may decrease bond prices because investors often prefer to buy shares. Bonds with a lower credit risk, such as AAA-rated government bonds, tend to attract higher prices.

Be alert for scams

The Australian Securities and Investments Commission (ASIC) is warning investors about scammers using bond investments as a lure.

In one report earlier this year, scammers claimed to be offering sustainability investment bonds in Bunnings Warehouse.

The scam offered higher than market returns and claimed that investments are protected by the government. It included links to Bunnings genuine website although the company does not offer bonds or any investment products.

ASIC’s MoneySmart website warns that scammers often impersonate real companies. They may use the name of a real person working at the bank or company they say they represent.

“Be wary of surprise contact and independently verify who you are dealing with,” says ASIC. For detailed steps, see check before you invest.

If you would like to learn more about your options for investing in bonds, please give us a call 03 9723 0522.

In the lead up to the end of the financial year (EOFY), it’s a great opportunity for property investors to pause, prepare their records, and make sure they’re making the most of what they can claim. Tax time might not be the most exciting part of investing, but a little preparation now can make a big difference.

Here’s what to keep in mind as 30 June approaches.

What you can and cannot claim

Property investment comes with a range of expenses, and there are some that can be tax deductible. These generally fall into two broad categories: things you can claim right away, and things you can claim over time.

Immediate deductions often include things like interest on your investment loan, council rates, property management fees, advertising for tenants, and basic repairs or maintenance work. If you’ve paid premiums for landlord insurance, those can typically be claimed too.

Then there’s depreciation—this applies to the wear and tear on both the building itself (if it was built after July 1985) and certain items within the property, like appliances, carpets, or blinds. If you haven’t already, getting a depreciation schedule from a qualified quantity surveyor can be a smart move. It helps make sure you’re not leaving money on the table and the cost of preparing the report can also be claimed.

Keep in mind: rules around what you can and can’t claim—especially for second-hand items—have changed in recent years. So, if you bought your property after May 2017, it’s worth double-checking the latest rules with your accountant before you make any claims.

Timing can make a difference

As EOFY approaches, it’s worth thinking about the timing of your expenses. For example, if you’ve got maintenance work coming up, insurance premiums or interest payments due, bringing them forward into this financial year could help reduce your taxable income.

Some investors also look at prepaying interest on their investment loans, depending on what their lender allows. It won’t be the right strategy for everyone, but it’s something to consider if you’re aiming to bring forward deductions.

Capital gains tax considerations

If you’ve sold an investment property during the year, you’ll also want to be across how Capital Gains Tax (CGT) applies. The timing of the sale, how long you’ve owned the property, and whether it was your primary residence at any point, all play into how much CGT you may pay.

Consider any available exemptions or discounts, such as the 50 per cent discount for assets held longer than 12 months. If you have any underperforming properties, selling them to realise a capital loss can offset your gains and reduce your CGT liability.

Keeping your records in order and avoiding errors

EOFY is also the time to make sure all your records are in order—receipts, loan statements, rental income summaries, and anything related to expenses. Staying organised means fewer headaches at tax time and makes life easier if the ATO ever comes knocking with questions.

According to the Tax Office, results from property data matching found a number of common errors. This included the reporting of net rent instead of gross rental income that results in the same expenses being claimed a second time. Properties are being omitted from returns and properties owned by multiple stakeholders are only having one of the stakeholders reporting the property, when all property owners are required to include this information when lodging their tax return.

Capital works or depreciating assets are also being commonly claimed as repairs and maintenance when they shouldn’t be, according to the ATO. For example, if you are renovating a bathroom, there are rules around what can and cannot be considered ‘a repair’, so you need to understand and distinguish each deduction in order to correctly lodge your tax return.

The big picture

EOFY can also be a good time to take a step back and review how your property (or portfolio) is performing overall. Are you charging rent in line with the market? Are your expenses creeping up? Are you getting the most from your current loan structure?

Review the structure of your property investments. Holding properties in tax-effective structures such as trusts or self-managed superannuation funds (SMSFs) can provide tax advantages, but you’ll need to get expert advice and weigh up the advantages and disadvantages and how this could affect your overall strategy.

Expert advice goes a long way

While it’s tempting to go it alone, property and tax can get complicated—especially with ongoing changes to legislation and what the ATO considers fair game. So, make sure you are getting the right advice to ensure you are claiming everything you’re entitled to and staying compliant with the latest regulations.

Getting on top of your property tax planning in the lead up to 30 June doesn’t just help you at tax time—it sets you up for stronger returns in the year ahead. With a bit of preparation (and a trusted advisor in your corner), you can finish the financial year feeling confident and in control.

Checklist for property investors at tax time

• Conduct a thorough property review
• Maximise tax deductions
  • Interest on loans
  • Property management fees
  • Strata Levies
• Maintenance and repairs
• Prepay certain expenses
• Write off bad debts
• Plan for Capital Gains Tax (CGT)
  • Reduce your CGT liability.
  • Utilise tax-effective structures
• Claim depreciation deductions
• Plan for the future

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

Following March’s Federal Budget, Prime Minister Anthony Albanese announced a national election for May 3, kicking off a campaign centred on tax cuts and cost-of-living relief.

Globally, trade war worries dominated headlines and contributed to markets falls during the month.

Click here to view our update.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

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Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

We understand you will have seen ongoing headlines around market volatility, it’s natural to feel a little uncertain.

That’s why our practice manager and adviser Matthew Borg has put together a short video to explain what’s happening — and, more importantly, what it means for you.

🎥 Watch the video here

In just a couple of minutes, we cover:

• What’s driving current market movements
• Why volatility is a normal part of investing
• Three simple tips to help you stay on track

If you have any questions or would like to discuss your investment strategy, please don’t hesitate to get in touch.

We’re here to support you — through the ups and the downs.

Ah, the adventure of house hunting! While scrolling through property listings, you might find yourself mesmerised by stunning photos and enticed by the descriptions. But hold on! Just as a place can look better with a well-angled shot, it can also sound more appealing thanks to a little wordplay. So, let’s decode some classic real estate phrases to see what they REALLY mean.

‘Renovator’s delight’ or ‘just needs a little TLC’

First up, we have the ever-popular ‘renovator’s delight’. Sounds promising, right? But this phrase usually means the property is barely liveable, perhaps requiring a hard hat and a strong stomach just to step inside. Envisage peeling paint, floors that could double as a trampoline, and a kitchen that looks like it was designed for a sitcom from the ’70s. It’s the real estate equivalent of saying, ‘It just needs a little love!’—which really translates to, ‘good luck with that!’.

Next on our list is any phrase with the words ‘tender loving care (TLC)’. A similar one to the ‘renovator’s delight’, this phrase sounds sweet and harmless, but it usually means the property is in desperate need of more than just a little pampering – so approach with caution.

‘Cosy’ or ‘modest proportions’

When you come across the term ‘cosy’ or ‘modest proportions’ you might be envisioning a warm, inviting space. However, it often translates to ‘so small you can barely swing a cat’—and trust me, you’ll want to consider the cat’s feelings here! Cosy spaces might give you that snug feeling, but they can also lead to some serious negotiations over personal space, especially if you’re living with someone else. If the listing mentions the above terms you might want to bring a tape measure along for your inspection.

‘Character-filled’ or ‘one-of-a-kind’ or ‘unique’

Now, let’s talk about these terms which are often used to describe a property that has a bit of personality. But beware! ‘Character’ can often mean ‘dated’, as in shagpile carpet and floral wallpaper that could trigger some serious nostalgia (or nightmares). If you’re looking for a home that screams ‘vintage chic’, this could be your jam. But if you’re hoping for something modern, you might want to steer clear unless you have a renovation budget the size of a small country.

Another one to look out for is ‘one of a kind’ or ‘unique’. These terms can often mean the owner is a creative soul who has channelled their efforts into the decor. Think magenta, chartreuse, polka dots and leopard print – all in the same room. Often nothing that can’t be fixed with a lot of white paint but just make sure their efforts did not move beyond easily fixed decor disasters to being a little too creative with the floorplan or structure of the place.

‘Centrally located’

Ah, the phrase ‘centrally located’. This one sounds promising, suggesting proximity to all the best spots. However, this often means the property is uncomfortably close to a shopping centre, freeway, a tram or train line, or some other source of noise pollution. Sure, you might be minutes away from the action, but if you value your peace and quiet, you might want to check exactly how centrally located it is before attending that inspection.

‘Up-and-coming neighbourhood’

This phrase conjures visions of hip cafes and artisan shops. However, it’s often a polite way of saying, ‘this area is a bit average’. You might find yourself living in a place that has potential, but it could also mean enduring factories, funky smells, or a local dive bar that hosts karaoke every Thursday night. If you’re the adventurous type, this could be right up your alley; if not, you might want to think about the pros and cons.

‘The backyard is your canvas’

Watch out for this one as it’s code for ‘there’s nothing but dirt or concrete back there’. Be ready for some backbreaking work and a few trips to the local nursery to turn a barren block into a verdant garden.

Navigating real estate agent descriptions can feel like trying to decode a secret language, and sometimes the language is more amusing than informative. Keep your sense of humour i

The number of Australians aged over 65 is expected to more than double in the next 40 years while the number of people aged over 85 is predicted to triple in that time.

Aged care funding and services have seen major changes in the years since the 2021 report of the Royal Commission into Aged Care Quality and Safety, and this year is no exception.

1 July 2025 marks the start of a host of new programs and improvements for the aged care sector. Several announcements have already been made this year, covering wage rises for aged care workers and nurses, and an increase in government funding for residential aged care accommodation.

In one of the most significant changes, the new Aged Care Act begins on 1 July. The Act aims to ensure the viability and quality of aged care.

A report by the Aged Care Taskforce last year calculated the residential aged care sector will need $56 billion by 2050 to upgrade facilities and build more rooms.

Current funding arrangements aren’t working. In the 2022-2023 financial year, almost half of all accommodation providers made a loss.

Some $300 million in federal grants will be delivered to accommodation providers this year to help with capital works upgrades.

And to improve the viability of the facilities the government is introducing other measures including larger means-tested contributions from new entrants and a higher maximum room price that is indexed over time.

Aged Care Minister Anika Wells says half of new residents will not contribute more under the new consumer contributions.

“For every $1 an older Australian contributes to their residential aged care, the government will contribute an average of $3.30,” says Wells.

Support at Home

The Aged Care Act also aims to support more people who want to stay in their own homes as they age. The federal government is investing $4.3 billion in a new Support at Home program, which replaces the Home Care Packages and the Short-Term Restorative Care programs.

There’ll be more 300,000 places available over the next 10 years and a shorter waiting period for Support at Home, and there’s a goal to simplify and improve the assessment process, making it easier to access different services as needs change.

Similar to the Home Care Package, Support at Home will provide:

• clinical care, such as nursing and occupational therapy
• help with maintaining independence including showering, dressing and taking medications
• support for everyday living tasks such as cleaning, gardening, shopping and meal preparation.

The government will pay 100 per cent of clinical care costs while Support at Home recipients will make a contribution towards independence and everyday living costs. The contribution amount will be calculated using the Age Pension means test and it depends on the level of support needed and the combination of income and assets. The highest classification with the most funding will receive a package of services worth $78,000 per year. There’ll also be funding for assistive technology and home modifications and end of life care.

A new cap on contributions will also apply. No one will pay more than $130,000 in their lifetime – whatever their means or length of care at home or in residential accommodation.

Refunding deposits

The new Aged Care Act also requires aged care accommodation providers to refund residents’ lump sum deposits within 14 days if they move to another facility or pass away. Interest must be paid on the lump sum until the amount is repaid. As before, some deductions are permitted provided they were included in the original agreement.

No disadvantage

For those already receiving home care packages or in aged care accommodation, the government says a ‘no-worse-off’ principle will provide certainty that they won’t have to pay more under the new laws.

Whether it is you or a loved one who is considering moving into aged care, it can be an emotional time. With these new changes being implemented, you may have a few questions. Please give us a call if you’d like to hear more about the changes or if we can help to assess your next step or plan ahead.