Jacqueline Barton

5 Financial Traps That Cost Aussie Tradies Thousands

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You’re earning good money, but are you keeping it? Many Aussie tradies work hard for every dollar but fall into expensive traps that sabotage their financial future. Here are five mistakes that could be costing you thousands.

The “tax write-off” trap

Just because something is tax-deductible doesn’t make it a good deal. If you spend $10,000 on new tools or a fancy ute upgrade because “it’s a write-off,” you’re still out of pocket $6,500-$7,000 after tax. Smart tradies only buy what they genuinely need to earn more money, not just to reduce their tax bill. Your accountant can help you understand the real cost versus the benefit of business purchases.

Upgrading the ute every two years

A reliable work vehicle is essential, but constantly trading up to the latest model is wealth destruction. Between depreciation, loan interest, and higher insurance, you could be burning $15,000+ per year. A well-maintained ute can easily last 10 years. That money saved and invested in super or property could set you up for early retirement, especially important when your body might not hold up for a full working life.

Skipping Super because you’re a sole trader

When you’re an employee, super happens automatically. As a sole trader or subcontractor, you need to pay yourself super—but many don’t. Starting at 25 and contributing just $200 a week to super could mean an extra $500,000+ by retirement at age 65. Your body won’t be climbing ladders or lifting heavy materials forever. Super is your future income when physical work slows down or stops altogether.

No Income Protection insurance

One workplace injury or health issue could end your earning capacity overnight. Yet many tradies skip income protection insurance to save money. If you can’t work, how will you pay your mortgage, feed your family, or cover bills? This insurance is as essential as insuring your tools or ute, as your ability to earn an income is your most valuable asset.

Buy-Now-Pay-Later for Everything

After pay and Zip make it too easy to buy new boots, tools, or even groceries across multiple payments. Before you know it, you’ve got five or six BNPL debts running simultaneously, each taking a chunk from every pay. These add up fast and leave you scrambling when unexpected expenses hit, whether that’s needing to replace tools, car registration, or having a slow work month. If you can’t afford to buy it outright today, you probably can’t afford the repayments either.

The trades offer incredible earning potential, but only if you’re smart with your money. Avoid these traps and you’ll be set up for life, not just living pay to pay, despite a great income.

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional.  We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.

2025 year in review: Soft landing for Australia

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Many investors breathed a sigh of relief at having survived (and even thrived) the turbulent economic and political events of 2025.

Super funds posted strong double-digit returns for the 2024-2025 financial year. Australia recorded modest economic growth, while inflation cooled a little throughout the year – albeit with a slight uptick at year’s end – and house prices surged before hitting the brakes in December. Share markets reported respectable gains locally and some surging profits globally.

Australia key indices year to DecemberShare markets (% change) year to December
2024202520242025
Economic growth2.1%1.8%ASX All Ordinaries7.5%6.8%
RBA cash rate4.35%3.6%US S&P 50024.2%16.6%
Inflation (annual rate)2.8%3.4%Euro Stoxx 508.3%18.3%
Unemployment (seasonally adjusted)3.9%4.3%Shanghai Composite12.7%18.4%
Consumer confidence92.894.5Japan Nikkei 22519%28.0%

Sources: RBA, ABS, Bloomberg, CoreLogic, Trading Economics, Westpac Melbourne Institute.

The big picture

Markets and economies around the world have danced to the tune of the Trump Administration’s second term in office and reacted to wars and unrest in the Middle East and Ukraine.

The US President’s often surprising policy twists and turns, particularly a punishing new tariff regime, saw markets falter and exporters of goods and services to the US plunged into uncertainty. As one commentator put it: “Over the past 12 months, the US has seen every norm of economic policy – trade policy, fiscal policy, monetary policy – blithely tossed aside.”i

The Australian dollar reflected the choppy conditions, hitting lows just under 0.60 USD in April before recovering slightly by year-end at just under 0.67 USD, this was buoyed by our strong iron ore exports and the growing demand for lithium, copper and rare earths.ii

The artificial intelligence revolution was another feature of the year, driving US share markets ever higher with some fearing the bubble is overdue to burst.

Economy

Inflation’s stubborn resistance to the Reserve Bank’s measures to bring it down could lead to further interest rate rises in 2026.

The Consumer Price Index eased slightly in November 2025, while figures released in early January 2026 showed an annual rate of 3.4 per cent, down 0.4 per cent on the previous month. The RBA’s flexible inflation target aims to keep the cost of living increases between two and three per cent.

The cash rate began 2025 at 4.35 per cent but after three cuts during the year, it was down to 3.6 per cent in December. The RBA is due to meet in February to consider its next move.

In the US, the Federal Reserve also cut rates three times, putting the interest rate to a range of 3.5 – 3.75 per cent.

The Australian economy grew 2.1 per cent in the year to September in a massive improvement on the previous year’s growth of 0.8 per cent.

Property

After two uneven years, home values surged again in 2025 by 8.6 per cent, adding about $71,500 to the national median.iii

It’s the strongest calendar year performance since the remarkable 24.5 per cent increase in 2021.

However, values softened in December, recording the smallest monthly increase in five months, and some suggest the risk of further rate rises this year may keep prices in check.

Darwin delivered the best performance with an 18.9 per cent gain in values during the year while Melbourne took the wooden spoon with a 4.8 per cent increase.iv

Share markets

Global equity markets proved that they could thrive, even in a higher-interest rate environment, and the AI revolution moved from the hype phase of the previous year to serious players in 2025.

While ‘The Magnificent Seven’ tech stocks have long ruled the S&P 500, in 2025 just two outperformed the index with a gain of 64.8 per cent for Alphabet and 38.9 per cent for Nvidia.v

It was a slower pace for Australian markets with the S&P/ASX 200 delivering a solid total return of 6.8 per cent. While the big banks faced some pressure on margins as interest rates peaked, the materials sector was supported by the global energy transition. Dividend yields remained attractive, continuing Australia’s tradition of providing reliable income for retirees and SMSFs.

Commodities

Precious metals drove commodity values in the past year with investors looking for security amid interest rate movements and geopolitical tensions.

Silver was up by an astonishing 182 per cent during the year, but a sell-off in December saw the price finish the year with a 147 per cent gain.vi

The remarkable run drew comparisons with the last bubble and ultimate crash in 1980, after a rise of 713 per cent.vii

Meanwhile, gold’s safe haven status during times of uncertainty saw it jump by 65 per cent during the year.

Continued demand from China kept the price of iron ore steadily increasing in the last half of 2025.

Looking ahead

It seems likely the issues that dominated the financial markets in 2025 may continue to shape performance and returns this year.

Global politics and war are likely to move commodity prices and equity markets while the contrariness of US foreign policy will both spook and buoy investors.

AI capability and implementation will grow apace, which is likely to see action on equity markets, but don’t forget warnings that the bubble may burst.

In Australia, all eyes will be on the RBA, with high levels of speculation as to where interest rates will be heading in 2026.

i Investors Are Flying Blind Into Policy Uncertainty | Bloomberg

ii Australian Dollar | Trading Economics

iii Home Value Index: Softer landing after strong 2025

iv Home Value Index: Softer landing after strong 2025

v Which Magnificent 7 Stock Had the Best Year in 2025? | Investing.com

vi Silver Price History United States 2025: USD Silver Prices

vii Gold, silver and palladium prices pull back sharply | ABC

A new chapter: Australia’s Aged Care changes

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When Mary turned 85 she never imagined she’d be navigating an entirely new aged care system.

The new Aged Care Act 2024 officially commenced on November 1, 2025, marking a significant transformation to aged care in Australian history. For Mary and approximately 1.4 million Australians who will benefit by 2035, this represents a fundamental shift in how the nation cares for its elderly[1].

The reforms emerged from years of scrutiny following the Royal Commission into Aged Care Quality and Safety. The new Aged Care Act puts the rights of older people at the centre of the aged care system, with a rights-based approach that prioritises dignity, safety, and choice[1].

Significantly, the Support at Home program has replaced the existing Home Care Packages Program and Short-Term Restorative Care Program[2]. This aims to help seniors like Mary remain in their own homes longer, rather than moving prematurely into residential facilities.

For those already receiving care, a “no worse off” provision ensures that clients already on a Home Care Package or in the national queue as of September 12, 2024, will not be financially disadvantaged by the changes[3]. However, those entering the system after that date face means testing to determine their contributions.

Residential care has also transformed. The Aged Care Quality and Safety Commission now holds providers accountable with stronger care standards and better monitoring systems[1]. Providers must register and meet rigorous expectations to receive government funding.

The single assessment process aims to make it simpler and fairer to determine what services people want and need, giving greater choice and control[1]. For Aboriginal and Torres Strait Islander people, and those experiencing homelessness, access begins at age 50 rather than 65.

While the reforms add complexity, with new contributions like the Hotelling Contribution and Non-Clinical Care Contribution, the underlying promise remains clear: Australian seniors deserve care that respects their autonomy, dignity, and individual needs. For Mary and her loved ones, that means peace of mind knowing the system is designed around her.

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.

[1] https://www.health.gov.au/our-work/aged-care-act/about

[2] https://www.myagedcare.gov.au/news-and-updates/big-changes-aged-care-sector

[3] https://www.catholichealthcare.com.au/aged-care-reforms-explained

Celebrating with heart, not habit

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As the festive season approaches, there is a noticeable shift in the air. The days grow longer, school terms wrap up, and communities across the country begin to prepare for end-of-year celebrations in all kinds of ways.

For some, it is about unpacking boxes of decorations, preparing familiar family recipes and racing around the shops. For others, it is time to plan a beach day, host a casual BBQ, or simply enjoy a well-earned break from routine.

The festive season in Australia looks different for everyone. That’s part of what makes it so special. We live in a society full of rich cultural traditions. Some festive traditions have been passed down for generations, such as midnight Mass, lighting candles for Hanukkah, or gathering for a family meal on Christmas Day. Others have come to us through popular culture, often shaped by images of snowy winters and roaring fireplaces that don’t quite fit our sunny, southern hemisphere reality.

Think hot roast dinners in 35-degree heat, matching Christmas jumpers despite the sweat, and singing about snowmen and sleighbells.

And that’s okay. That’s part of the rich tapestry that is celebrating the festive season.

However, while tradition can be beautiful, it’s also worth asking yourself: do these traditions still bring joy to my life? Or am I doing them out of habit or obligation?

Reducing stress, reclaiming joy

The lead-up to the holidays can easily become overwhelming. This time of year often brings with it a long list of expectations about what to cook, how to decorate, where to be, and what to buy.

Trying to meet every expectation, real or imagined, can drain the joy right out of what is meant to be a time of celebration.

By letting go of pressure and embracing flexibility, we can shift the focus back to what really counts. Laughter. Connection. Rest. Reflection.

It is okay to opt out of what no longer fits. In fact, doing so often creates more space for what actually feels meaningful.

Rethinking what celebration looks like

While traditions can be a wonderful way to connect with our roots, they are not set in stone. Over time, life changes. Families grow and shift. Priorities evolve. The way we mark special moments can grow with us.

So, it is worth pausing to ask: are these traditions still adding joy to my life? Or am I continuing them out of pressure, or a sense of obligation?

Giving yourself permission to do things differently can be both freeing and fulfilling.

Making meaning in your own way

Reimagining tradition does not mean abandoning everything you love. It means choosing what feels right for you and creating space for joy, connection and rest – however that looks.

You might decide to swap the roast for prawns and salad and the pudding for a pavlova. Or ditch the mess of wrapping paper and presents in favour of shared experiences. You could even celebrate on a different day to reduce stress. Some people find joy in having a picnic in a beautiful location, taking a family beach walk at sunset, or simply spending the day unplugged from screens.

For others, creating new traditions might involve volunteering in the community or cooking dishes from their cultural heritage.

Whether your festive season is full of people or quiet moments, it only needs to reflect what matters most to you.

The season is yours to shape

There is no one way to celebrate. What is right for one person may not suit another and that is the beauty of it. The festive season does not have to look a certain way to be valid or joyful.

You might still love baking the same cake your grandmother made or singing carols in your street. Or you might find joy in starting completely new customs that reflect your values and lifestyle today. Either way, the important thing is that your celebrations feel true to you.

Small moments can become meaningful rituals too. A quiet morning coffee, a favourite song playlist, or calling someone you have not spoken to in a while are all things that can bring warmth and joy without adding stress.

Whatever this season means to you…

We hope it brings you joy.

The sustainable wealth mindset: Find your financial rhythm

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Building wealth isn’t about forcing yourself into someone else’s formula. It’s about discovering a rhythm that works for your life, your values, and your unique circumstances.

To grow your wealth, the real challenge isn’t making dramatic financial changes, but finding a sustainable pace you can maintain year after year.

Practice makes perfect

Think of your financial journey like learning a musical instrument. You wouldn’t expect to master the piano by practising twelve hours one day, then ignoring it for months. Progress comes from finding a practice rhythm you can sustain with consistent, manageable sessions that gradually build your skills. Your finances work the same way.

Align your money and your values

The foundation of a sustainable wealth mindset is alignment between your money and what truly matters to you. When your spending and saving reflect your genuine priorities, whether that’s family security, career flexibility, travel, or creative pursuits, you’ll naturally feel more motivated to stay on track. This isn’t about deprivation; it’s about intention.

Finding your rhythm also means being honest about what’s sustainable for you personally. Extreme frugality might work brilliantly for some people, but if it leaves you feeling deprived and resentful, it’s not your rhythm. Build space for the things that bring you genuine joy. Your budget should enable your life, not suffocate it.

Automate your actions

Research consistently shows that small, regular actions can create remarkable long-term results. The key is making these actions feel natural rather than forced. Automation helps enormously here. When funds move automatically into savings and investments, you remove the daily decision-making that can drain motivation. Your wealth builds in the background whilst you focus on living your life.

When motivation ebbs and flows

Some months you’ll feel energised to tackle financial reviews and optimise your investments. Other times, life gets busy, and you need your systems to run on autopilot. A sustainable approach honours these natural fluctuations rather than fighting them. Here’s where having a financial planner to help keep you on track can be a great benefit.

Celebrate your progress

Celebrate progress in ways that feel meaningful to you, whether that’s watching your net worth grow, seeing your investment portfolio diversify, or simply feeling more confident about your financial future. Regular acknowledgment of progress, however small, reinforces the positive patterns you’re creating.

Your financial rhythm is uniquely yours. It might look different from your friends’, your family’s, or what you see on social media. That’s not just okay – it’s essential. When you stop trying to keep someone else’s tempo and find your own sustainable beat, wealth building transforms from an exhausting obligation into a natural part of how you live.