Friends With Money

In August 2001, Australia’s first ETFs were launched. Today, more than two million Australians own them. So what can investors learn from 25 years of ETF investing?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Jonathan Shead, head of investments, Australia, at State Street Investment Management, to discuss the evolution of ETFs and the investing behaviours that matter most.

00:00 Introduction

01:11 Biggest lesson from 25 years of ETFs

03:07 How investors should approach ETFs as investments

04:35 The evolution of diversification over time

06:20 Can you own too many ETFs?

07:37 Which ETFs have been most popular with investors?

09:35 Lessons from the GFC and COVID downturns

11:37 ETF liquidity during market crises

13:47 The future: Active ETFs and tokenisation

15:36 Conclusion

#friendswithmoney #tomwatson #jonathanshead #etfs #investingPodcast

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💰 How can investors maximise returns after Australia's biggest tax shake-up in decades?

❓ Question: With major tax reforms set to begin from July 1, 2027, what investment strategies could help Australians grow wealth more effectively while navigating the end of the 50% capital gains tax discount and changes to negative gearing?

✅ Answer: According to Nicola Field, one of Australia's most significant tax reforms in recent years will reshape the way investors think about property, shares, ETFs and wealth-building. While some traditional strategies may become less attractive, investors still have opportunities to maximise after-tax returns by focusing on income-producing assets, ETFs, investment bonds and superannuation. The key is understanding how the new rules change the tax treatment of different investments and preparing well before the reforms take effect.

💡 The government had two key goals in mind. The reforms aim to improve housing affordability by reducing investor competition for established homes while also ensuring higher-wealth Australians contribute more tax. According to Nicola Field, policymakers were responding to the growing dominance of investors in the housing market and concerns that wealthy Australians derive much of their income from more lightly taxed sources such as capital gains, trusts and dividends.

💡 Investment property rules are changing significantly. From July 2027, investors purchasing established properties will no longer receive the benefits of negative gearing. Capital gains on investment assets will also move away from the long-standing 50% CGT discount, with gains instead indexed for inflation and subject to a minimum tax rate of 30%. New-build investment properties will continue to enjoy more favourable tax treatment.

💡 Income-focused investments could become more attractive. Assets that generate regular income rather than relying heavily on capital growth may gain popularity under the new rules. Nicola highlights private credit funds, income-focused ETFs and high-dividend shares such as Telstra and Transurban as examples that may appeal to investors seeking tax-efficient returns.

💡 Investment bonds are enjoying a resurgence. Often overlooked, investment bonds offer a compelling proposition under the new regime. Earnings are taxed at a maximum of 30% within the bond structure, and withdrawals can be tax-free after 10 years, making them particularly attractive for long-term investors and families planning for future generations.

💡 ETFs may become even more popular. Beyond diversification and low costs, ETFs can offer administrative and tax advantages. Because index-tracking ETFs make relatively few portfolio changes, they typically generate fewer capital gains events. They can also simplify record-keeping, making future tax calculations much easier than managing large portfolios of individual shares.

⚠️ Investors should not wait until 2027 to act. Nicola Field suggests reviewing loss-making investments ahead of the new rules. Capital losses realised before July 2027 may be more valuable because future losses will not receive the benefit of inflation indexation. Investors holding pre-CGT assets acquired before 1985 may also want to consider their options before gains become taxable under the new framework.

👥 Different generations may need different strategies.

• Gen Z: The First Home Super Saver Scheme remains a powerful tool, combining tax savings with the potential for stronger returns than traditional savings accounts.

• Millennials: ETFs continue to offer diversification, simplicity and tax efficiency while balancing the financial demands of mortgages and young families.

• Gen X: With retirement becoming more visible on the horizon, superannuation grows increasingly attractive. Investment bonds may also suit those wanting to build wealth for children.

• Baby Boomers: Superannuation remains a standout option, while investment bonds can provide a tax-effective way to invest for grandchildren.

🏦 Superannuation remains the standout winner. Despite all the tax reforms, super continues to offer compelling advantages through concessional tax treatment, tax deductions on contributions and long-term wealth accumulation benefits. The trade-off, of course, is accessibility, as funds remain locked away until preservation age. For many Australians, however, it remains one of the most effective wealth-building tools available.

💡 Why it matters:

The federal government's tax reforms will fundamentally change how Australians invest from July 2027. Strategies that have been staples for decades, including negative gearing and the 50% capital gains tax discount, will no longer deliver the same benefits. Investors who understand the changes early can take advantage of emerging opportunities in ETFs, investment bonds, income-producing assets and superannuation. The challenge now is not just growing wealth, but maximising what you keep after tax.

🎙️ Sources:

Nicola Field, finance writer

Vanessa Walker, managing editor, Money magazine and host, Friends With Money podcast

⏱️ Timestamps:

00:00 – Why the government is reforming Australia's tax system

01:07 – Helping first-home buyers and taxing wealth more fairly

02:28 – Key tax changes that have passed

03:45 – What the reforms mean for shares, ETFs and managed funds

04:12 – Income investments that may benefit under the new rules

05:00 – Why investment bonds are back in focus

05:34 – Are ETFs more tax-effective than individual shares?

07:09 – What investors should do before July 2027

08:43 – Investment strategies for Gen Z

09:29 – Why ETFs suit millennials

09:57 – Opportunities for Gen X investors

10:38 – The best options for baby boomers

10:53 – Is superannuation still Australia's best investment?

12:01 – Money magazine's guide to investing for maximum profitPodcast Links:

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After a stellar 2025, cryptocurrency has endured a difficult start to 2026. So what's behind the downturn and where do investors go from here?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Justin Lin, investment strategist at Global X ETFs, to discuss the latest price movements and what could lie ahead for the crypto market.

00:00 Introduction

01:45 Bitcoin and Ethereum performance in 2026

02:55 What's been driving the downturn?

05:15 How Australian investors are reacting

07:45 Crypto battles AI for investor attention

09:20 Institutional demand and ETF adoption

11:00 The long-term investment case

13:45 Outlook for the second half of 2026 and beyond

14:55 Conclusion

#friendswithmoney #tomwatson #justinlin #crypto #bitcoin

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Self-managed super funds now hold more than $1 trillion in assets, yet many Australians still aren't sure how they work or whether they could be an option worth considering.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Marisa Broome, certified financial planner and principal of wealthadvice.com.au, to explain the mechanics, benefits and risks of self-managed super funds (SMSFs).

00:00 Introduction

01:45 What an SMSF is and how it differs from retail and industry funds

03:25 Why fees and asset allocation matter

05:00 Why people choose SMSFs

06:20 Who SMSFs are best suited to (and who should avoid them)

08:45 How much money you should have before starting an SMSF

10:00 The practical steps involved in setting up a fund

15:00 Why investors should do their homework before setting up an SMSF

16:15 Conclusion

#friendswithmoney #tomwatson #marisabroome #super #smsf

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Debt can help fund life's big purchases. But for some, it can become a major source of financial stress. So where should people start if they want to get on top of it?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Deb Shroot, financial counsellor and Financial Counselling Australia sector advocate, to discuss prioritising debt, freeing up cash flow and working towards becoming debt free.

00:00 Introduction

02:00 Rising debt stress: mortgages, credit cards and utilities

03:00 First steps when debt feels overwhelming

04:30 How to prioritise multiple debts

07:00 The danger of the debt spiral

08:00 Common debt repayment mistakes and hardship options

09:00 Where to find extra money in a tight budget

12:00 Why you should seek help before reaching breaking point

14:00 Building healthy financial habits that last

15:00 Seeking trustworthy financial advice

16:05 Conclusion

#friendswithmoney #tomwatson #debshroot #debt

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Live where you want, buy where you can – that’s been the idea behind rentvesting. But are policy tweaks and market swings changing the equation?

On this episode of the Friends With Money podcast, Money’s Tom Watson is joined by Arjun Paliwal, founder and chief executive of InvestorKit, to discuss the latest rentvesting developments.

00:00 Introduction

02:43 Who is rentvesting used by?

04:15 The tax changes impacting rentvesting

06:02 Is rentvesting still worth it?

06:27 Sydney case study and numbers

12:04 The rentvesting decision checklist

15:34 How investors should adapt to policy changes

19:49 Final lessons for long-term investors

22:05 Conclusion

#friendswithmoney #tomwatson #arjunpaliwal #property #rentvesting

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The hidden costs that could sink your budget!

Question:

What are the real, often overlooked costs of owning a home in Australia and how can buyers avoid nasty surprises?

Short answer:

Owning a home is much more expensive than just paying the purchase price. According to Georgia Madden, new homeowners face steep mortgage interest, rising insurance premiums, energy bills, maintenance, council rates, and if buying an apartment, strata fees and surprise levies. Many underestimate costs like rebuilding insurance, ongoing repairs, and the impact of rate rises. Smart strategies include reviewing insurance annually, fixing small problems early, and checking apartment sinking funds before buying.

Why it matters:

For first-time buyers and anyone budgeting for a home, missing these hidden costs can lead to financial stress. Understanding the full picture means you can plan, save, and protect your investment rather than being caught out by “budget sinkholes.”

Sources:

• Vanessa Walker, Managing Editor, Money Magazine

• Georgia Madden, Home & Property Journalist

• Mortgage brokers, insurance experts, property managers

• Money magazine, June issue

Timestamps:

01:31 Mortgage breakdown: interest vs equity

02:46 Insurance: costs and common mistakes

03:59 Energy bills & efficiency tips

04:55 Solar: upfront costs and payback

05:45 Maintenance: how much to set aside

06:51 Hidden repair costs: plumbing, wiring, roofing

07:51 Council rates & water charges

08:37 Strata fees & apartment levies

09:47 Cautionary tales & advice for buyers

10:16 Wrap-up & where to find more info

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How to dodge bust-ups and actually talk cash with your partner

Question:

How can Australians have honest, productive conversations about money with partners or family without awkwardness, arguments, or avoidance?

Short answer:

Money conversations are often dodged due to fear of conflict, judgment, or not feeling confident. But avoiding them can make financial stress worse. According to Meray El-Khoury (MetLife Australia), the key is to start small: use gentle, time-bound openers (“Can we spend 15 minutes talking about money?”), focus on “we” not “you”, and break topics into manageable chunks - cashflow, debt, protection, retirement. Regular, calm check-ins help families plan for life’s curveballs and build financial resilience together.

Why it matters:

If you don’t talk about money, you risk missing warning signs, being unprepared for emergencies, and leaving one partner vulnerable. Open, positive conversations help families set goals, avoid nasty surprises, and take control of their financial future, instead of letting circumstances dictate outcomes.

Sources:

• Michelle Baltazar, editor-in-chief, Money Magazine

• Meray El-Khoury, chief insurance officer, MetLife Australia

• Money magazine podcast: Friends With Money, July 2026 episode

Timestamps:

00:02:04 Why we avoid money talks: fear, judgment, lack of confidence

00:04:50 How to start: gentle openers, time-bound, “we” language

00:06:45 Order of topics: cashflow, debt, protection, retirement

00:08:01 Protection: insurance, planning for the unexpected

00:13:34 Retirement: conversation starters and positive framing

00:12:02 Regular check-ins: monthly, calm, non-confrontational

00:15:22 Inclusivity: making sure both partners are involved

00:17:05 Incremental progress: clarity comes from talking

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More than four million Australian homes have gone solar, but for many others, the benefits have remained out of reach. The Solar Sharer Offer could change that.

On this episode of the Friends With Money podcast, Money’s Tom Watson is joined by Brian Spak, general manager of advocacy and policy at Energy Consumers Australia, to unpack the new Solar Sharer Offer and who will benefit from free electricity.

00:00 Introduction

01:29 How the Solar Sharer Offer works

03:54 Which households are eligible for Solar Sharer?

06:07 How to make the most of free midday electricity

07:56 How to sign up for Solar Sharer

08:43 What kind of savings can households expect?

10:17 Why caution and bill monitoring could pay off

11:52 Conclusion

#friendswithmoney #tomwatson #brianspak #energy #solarsharer

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The end of the financial year may be just around the corner, but it’s not too late to make some superannuation moves that could benefit your balance.

On this episode of the Friends With Money podcast, Money’s Tom Watson is joined by Greg Elias, senior private client adviser at UniSuper, to discuss the steps you can take before June 30 and the upcoming super changes worth knowing about.

01:44 Making a concessional contribution

05:35 Contribution caps explained

06:18 The benefits of salary sacrificing

09:00 Division 296: who it affects and what to know

12:01 What are the payday super changes?

15:03 Market volatility and superannuation

18:40 Common EOFY mistakes

20:38 Conclusion

#friendswithmoney #tomwatson #gregelias #superannuation #eofy

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