The Top 10 Financial, Tax Planning, and Wealth Protection Issues to Watch Out for in 2025

When it comes to tailored financial advice, Sydney residents are spoilt for choice. But the Top 10 Financial, Tax Planning, and Wealth Protection issues to watch out for in 2025 will resonate across Australia.

There’s no denying Australians are facing a rapidly-evolving economic landscape.

From widespread tax reforms to global economic uncertainties, the financial decisions you make now can impact your wealth and financial well-being well into the future.

That’s why we’ve taken a look at the Top 10 Financial, Tax Planning, and Wealth Protection Issues most likely to affect Australians in 2025.

Let’s dive straight in.

1. New Stage 3 Tax Cuts

Stage 3 Tax Cuts? They’re now in force. 

While they were originally supposed to eliminate the 37% marginal tax rate, public backlash forced the federal government to go back to the drawing board.

They came back with a redesign that sees the 37% marginal tax rate retained, but with the threshold lifted to $135,000. The 45% marginal tax threshold has also been lifted from $180,000 to $190,000.

As a result, high income earners on incomes of more than $190,000 will now see what was originally a tax benefit of $9,075 effectively halved to $4,546.

And while middle income earners will benefit from greater disposable income, these tax cuts make it an ideal time to assess a range of wealth protection strategies.

High income earners, in particular, should explore tax-effective investment strategies that take into consideration the new thresholds and tax rates.

Not sure where to start? Drop us a line at [email protected] or call (02) 9415 1511 to find out how we can help.

2. More Superannuation Tax Changes

It’s not just changes to marginal tax rates Aussies should keep an eye on in 2025.

We’ve all known they were coming, but from the 2025-2026 financial year onwards, individuals with a total superannuation balance in excess of $3 million will pay up to 15% more in tax on the earnings attributed to the balance over the threshold.

It’s a policy designed to curb the use of superannuation as a tax shelter for the ultra-wealthy, but one that will affect plenty of high-income earners across Sydney and beyond.

If you find yourself in that boat, here are a couple of strategies worth considering: 

• Review your superannuation balance and identify opportunities to diversify wealth outside of super—such as using individual names, family trusts, and companies for managing your surplus wealth.
• Talk to a Prime advisor about the impact of these changes on your retirement plans.

3. Economic Uncertainty and Interest Rates

While we’ve all been keeping a watchful eye on the Reserve Bank of Australia, we’re likely to continue waiting for substantial interest rate cuts for some time yet.

Which means high interest rates are putting pressure on household budgets—not to mention eating into savings and increasing the cost of borrowing at the same time.

However, there are some steps you can take to help safeguard your finances, including:

• Focusing on paying down high-interest debt to reduce your vulnerability to rising rates.
• Diversifying your investments to hedge against inflation, including through careful property purchases or equities with strong dividend yields.
• Maintaining a robust emergency fund to weather economic shocks in times of global uncertainty. 

4. The Importance of Cybersecurity

Cyber crimes are on the rise and they are causing Australian businesses considerable grief.

A report in the Australian Signals Directorate found the average cost of a cyber attack on a small business had jumped to $49,615—an increase of 8% on the year before.

And while the average cost of a cyber attack on medium and large firms is trending downwards, the prevalence of cyber attacks across the Australian business landscape is not.

That means Aussie businesses need to be more vigilant than ever—not least because the cost of a cyber attack has the potential to wipe out your business entirely.

How can you stay safe online and ensure you don’t fall victim to fraud? Start with some simple steps.

• Use strong, unique passwords where possible. If you have trouble remembering them, use a password manager.
• Turn on Multifaction Authentication (MFA) to add an extra layer of cybersecurity. And if you have any concerns around payments, simply call your clients to confirm them.
• Report phishing scams—which involves scammers pretending to be from a trustworthy organisation to steal your personal data—whenever they occur. They remain one of the most common cyber threats.
• Update your software regularly. Doing so ensures your operating systems are up-to-date with the latest security patches. 

As always, if you have any questions about your cybersecurity, you’re always welcome to contact us at [email protected] or call (02) 9415 1511 to discuss them.

5. Shifting Property Markets

Is there a more uniquely Australian topic than our ever-changing property market?

Google ‘financial advice Sydney’ and you won’t be surprised to find some advisors starting to wonder whether the goalposts will soon shift.

With housing affordability remaining the hottest of topics, discussions around putting the brakes on negative gearing and making changes to capital gains tax have the potential to drastically alter the investment property landscape.

For those with investment properties—or anyone looking to get into the market—it’s worth:

• Reviewing your property portfolio and determining whether it’s too top-heavy to retain.
• Optimising your tax position by claiming all eligible deductions, particularly for investment properties.
• Watching for government initiatives aimed at first-home buyers or investors and adjusting your strategies accordingly.

6. Digital Asset Regulations

Have you invested in cryptocurrency? Plenty of Aussies have.

But with cryptocurrencies and other digital assets continuing to grow in popularity, regulatory oversight is also increasing. 

New taxation rules in 2025 require stricter reporting of crypto transactions, staking income, and capital gains.

To ensure you’re not falling foul of any crypto regulations, make sure you:

• Keep detailed records of all transactions, including purchases, sales, and transfers.
• Use tax software, or consult a Prime advisor, for help with reporting complex crypto activities.
• Be mindful of tax implications when engaging in activities like staking or yield farming.

7. Family Trust Scrutiny

As we’ve written in the past, discretionary trusts have long been a popular method of wealth protection. 

However, the Australian Taxation Office (ATO) is intensifying its scrutiny of these arrangements, targeting those it deems aggressive or non-compliant.

Here’s how to ensure your family trust doesn’t attract any unwanted scrutiny:

• Conduct a compliance review of existing trusts to ensure they align with ATO guidelines.
• Avoid ‘dividend washing’ or other schemes flagged as high-risk by regulators.
• Talk to your Prime advisor about how to optimise your trust structures and ensure they remain compliant.

8. Green Investment Incentives

Sustainability is in—and it’s only going to pick up speed in 2025. 

Which means that as Australia transitions to a greener economy, new tax incentives and subsidies for renewable energy and sustainable investments are continuing to emerge.

While these changes are designed to benefit the environment, they can also benefit you.

If you’re thinking of going green, it’s worth considering the following:

• Investigating opportunities to invest in renewable energy projects or green bonds.
• Upgrading your home or business to energy-efficient systems and claiming applicable tax rebates.
• Including sustainability-focused investments in your portfolio for the likelihood of long-term growth.

9. Estate Planning and Wealth Transfers

We’ve heard a lot about the ‘Bank of Mum and Dad’ over the past few years, and it’s clear intergenerational wealth transfers are becoming increasingly common.

That’s because many younger Australians are finding it increasingly difficult to clamber onto the property ladder without a little help from their parents.

And while some parents are dipping into their own cash reserves to help their kids come up with a first-home deposit, it’s just as common for any wealth transfer to take the form of an inheritance.    

Does that mean we’ll see some form of inheritance tax in the near future? It’s not beyond the realms of possibility.

Which means that to protect your legacy—and your wealth—you may wish to:

• Develop a comprehensive estate plan.
• Use strategies like gifting assets during your lifetime to reduce the taxable estate.
• Establish or review family trusts to ensure a more efficient wealth distribution.

10. Aged Care Costs

It’s an area of concern for many of our clients—the ongoing costs of aged care in Australia.

Our aging population and rising healthcare costs are placing financial strain on families and retirees, but there are some steps you can take to mitigate those concerns.

They include:

• Taking out long-term care insurance to cover potential future expenses.
• Exploring tax-effective strategies for managing healthcare costs, such as using superannuation to fund aged care.
• Reviewing estate plans to ensure provisions for healthcare needs are adequately addressed.

The Most Important Step—Proactive Planning

While 2025 may hold a few unexpected twists and turns for those navigating the pathway to financial freedom, there are a few simple steps you can take to be prepared. 

By staying informed and talking to your Prime advisor, you can optimise your tax strategies, protect your wealth, and ultimately take the next steps towards achieving your financial goals.

Key Steps to Take in 2025:

1. Review your finances: Adjust for tax changes, economic trends, and personal goals.
2. Diversify your investments: Reduce risk by spreading investments across different asset classes.
3. Stay informed: Keep up to date with policy announcements and legislative changes that could impact your finances.
4. Talk to PrimeAdvisory: We know when it comes to financial advice, Sydney has plenty of advisors to choose from. But not many are ranked in the top 1% of financial advisors across Australia, as our own Angus Rodgers was. He was recently named on the Top 150 Financial Advisors list by Barron’s—one of the world’s top investing publications.

If you’ve got any questions for anyone in the team, simply get in touch. 

We’re here to make more possible with your money.