For decades, the path to building wealth in Australia seemed relatively straightforward: buy your home, purchase an investment property, use negative gearing to help manage the cost, and eventually focus more heavily on superannuation.
But with changes to negative gearing, capital gains tax and investment structures on the horizon, that traditional strategy is becoming much harder to follow—especially for Australians starting from scratch. So what does financial advice look like now?
In this episode, James Wrigley from First Financial joins Veronica and Chris to unpack how the new tax environment is changing the way Australians build wealth. James explains why some clients in their 40s are now being encouraged to put substantially more money into superannuation than they would have previously, while still maintaining money outside super for flexibility.
The conversation goes well beyond property. We explore what higher capital gains tax means for shares and ETFs, why automatically rebalancing funds can create additional capital gains, how the proposed changes could affect family trusts and bucket companies, and why some investors may eventually move towards investment company structures instead. We also look at whether property still makes sense when negative gearing becomes less attractive—and why upgrading or renovating your own home could become a more compelling alternative.
For younger Australians, James also discusses the First Home Super Saver Scheme and why it could receive more attention as the investment landscape changes. For older Australians, the conversation turns to retirement, investment property sell-down strategies and the growing trend towards "giving while living" as wealth transfers between generations earlier. The message throughout is clear: higher taxes may change the maths, but they shouldn't become an excuse to stop investing altogether.
Episode Highlights
01:49 – How the Budget Changes Financial Advice
05:19 – Why Super Has Become Plan A
07:33 – Why Trusts Are Losing Their Appeal
10:09 – Division 296: What the $3M Super Rule Means
15:15 – Why CGT Makes Investing More Complicated
19:44 – Will Higher CGT Kill Investment Aspiration?
24:24 – Why Property Still Has a Contrarian Case
28:09 – Could Upgrading Your Home Beat Buying Property?
31:13 – Why Fear Could Keep Sellers Off the Market
36:24 – When Should Investors Sell Before Retirement?
38:08 – Why the First Home Super Saver Scheme Matters
44:38 – Why Parents Are Choosing to Give Wealth Earlier
46:58 – Are Trusts and Bucket Companies Dead?
48:13 – Why Investment Companies Could Replace Trusts
About the Guest
James Wrigley is a financial adviser at First Financial and the author of Retire Life Ready. He has worked in the superannuation and financial advice industry for more than 20 years, including more than a decade as a financial adviser. James is known for breaking down complex financial concepts into practical insights, with hundreds of thousands of Australians following his educational content online.
In this episode, James brings a practitioner's perspective to the latest tax changes, drawing on the real conversations he is having with clients across different stages of wealth creation—from people in their 40s who had planned to buy investment properties, to retirees reconsidering their property holdings and families looking at how to transfer wealth to the next generation.
Connect with James
Resources
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Veronica & Chris
