Perth Investment News – October 2025
Welcome to the October edition of Wealth News
This quarterly newsletter brings you the latest insights on the strategies, legislative changes and opportunities we are exploring.
Legislative changes – Division 296
In recent news, the Government has announced important updates to the proposed Division 296 tax, targeting superannuation balances exceeding $3 million.
Commencing 1 July 2026, a new two-tier tax system will apply.
- Earnings attributable to balances between $3 million and $10 million will be taxed at an additional 15% (taking total tax up to 30%) and,
- Earnings attributable to balances above $10 million will face an additional 25% (taking total tax up to 40%).
Importantly in another concession, these thresholds will be indexed to the Consumer Price Index. Specifically, the CPI increase will be $150,000 for balances between $3 million and $10 million. The second threshold of $10 million will be indexed in $500,000 increments.
In further positive news, the calculation method has shifted to a ‘realised earnings’ approach, rather than taxing unrealised gains.
Markets in brief
The third quarter of 2025 saw continued strength in global equities, with the major US indices, including the S&P 500 and NASDAQ 100, approaching record highs. The rally was driven by resilient corporate earnings and optimism around artificial intelligence, with US growth stocks leading the charge. Asian markets delivered robust gains while European markets were mixed. Australian shares weathered a volatile earnings season but ended the quarter up 4.7%.
Bond markets delivered positive returns as several central banks, including the US Federal Reserve and Reserve Bank of Australia, reduced interest rates in response to softening labour markets although there are increasing questions about the outlook from here.
Gold proved popular among investors seeking safety amid economic and geopolitical uncertainty, surging over the quarter to end at US$3,859/oz. The rally was supported by concerns over fiscal stability, particularly for the US outlook and ongoing global tensions.
We hope you find this newsletter informative and useful. As our business continues to grow, we appreciate our ongoing referral network, so if you require or know of anyone who needs financial or investment advice, we are here to help.
The links to the following articles (below) are provided by Pitcher Partner Investment Services Pty Ltd (PPIS) a separate business based out of Melbourne.
Navigating the inevitable, embracing volatility
Investing always involves volatility, but riding out market ups and downs is vital to long-term success. Instead of fearing short-term swings investors are often served by staying focused on quality investments, allowing time and compounding to work in their favour. Volatility isn’t just a risk—it’s also an opportunity with this article looking at the nature and opportunity of volatility.
Asset based lending, the next phase of private credit
Private credit is rapidly evolving beyond traditional lending, with asset-based lending now offering new opportunities and risks. As this market matures, careful asset selection and robust due diligence are crucial for investors to navigate this complex landscape. This article looks at the evolving market and growth.
Curves don’t lie
Understanding the yield curve helps investors navigate today’s financial markets. This article explains what the yield curve is, why it matters for investment decisions, and how its changes signal shifts in economic health and borrowing costs.
