Link to IWP's July 2025 Update (PDF) https://tinyurl.run/PHjq3Z

With geopolitical tensions easing, where are the markets turning their attention now? Our July Market and Economic Update breaks down the key shifts we're seeing.

This month's key points:

A Calmer Global Outlook: Easing geopolitical tensions and a stable ceasefire between Israel and Iran have provided a supportive backdrop for markets. This sentiment has helped drive global equities higher, with the S&P 500 and Nasdaq 100 approaching their all-time highs.

Shift to Domestic Policy: As global risks subside, market focus is pivoting to US domestic policy. Federal Reserve Chair Powell's recent comments have reinforced expectations for interest rate cuts later this year.

Policy in Focus: In Washington, President Trump is advancing the US tax and spending bill, which is expected to remove or weaken the "revenge tax" on non-US investors—a welcome development for the market. Progress on trade negotiations ahead of a July 9 deadline has also improved sentiment.

Overall, the reduction in geopolitical risk premiums has led to lower oil prices and low market volatility. While the outlook is positive, rising US inflation remains a key factor that could potentially delay policy easing.

Should you prefer this in video form, please head to https://youtu.be/CnpIMJnWqUI?si=wbnMXKP67xOfY9xZ

IWP Strategic Update (PDF) - https://tinyurl.com/22qgo83x

The proposed Division 296 tax introduces a significant change for superannuation balances over $3 million. With a proposed start date of 1 July 2025, this legislation will apply an additional 15% tax on earnings related to balances above the threshold.

Crucially, this tax is calculated on both realised and unrealised gains, creating potential liquidity challenges for assets like property within an SMSF. Given the start date may be retrospective, it is vital to understand the implications now.

In this video, Cameron and Chris provide a detailed analysis of the proposed law. We walk through worked examples, discuss the impact on asset allocation, and outline key strategic considerations for clients.

Shoudl you wish to watch the full video - please head to YouTube - https://www.youtube.com/watch?v=oRcEjegnwJk

#Division296 #Superannuation #TaxLaw #FinancialPlanning #SMSF #WealthManagement #AustralianTax

Disclaimer: This content is for informational purposes only and does not constitute financial advice.

Link to IWP's May 2025 Update (PDF) - https://tinyurl.com/24r9ga3a

This month Cam and Chris revisited the full economic data pack for the first time in 6 months.

Globally, the US Federal Reserve's preferred inflation measure, core PCE, slowed to 2.6% annually, with a minimal 0.1% monthly increase in May. US GDP growth is expected to be weak but avoid recession, though policy uncertainty could slow business investment. Tariffs are predicted to lead to weaker growth and higher prices in the US.

Cam and Chris then reviewed IWP's Flagship portfolio - Lifestyle Model 4 - showing a 1-year return of 11.88%, outperforming its index. As always we cautioned against market timing, noting that the best and worst trading days often occur close together.

As always, please do not hesitate to reach out if you have any questions or would like to discuss your portfolio in light of these developments.

Should you prefer this in video form, please head to - https://youtu.be/7gfigGwfJxA