Financial Year End Game Plan & Strategy Signals

Global Perspective

The global economy in 2025 continues to navigate a cautious path. Inflation in the Eurozone has returned to the European Central Bank’s (ECB) 2% target after three years of overshooting. In response, the ECB has cut interest rates for the eighth time in a year and signalled a likely pause. Some officials now warn that inflation could undershoot, potentially falling to 1% by early 2026.

Meanwhile, the US Federal Reserve has held interest rates steady at 4.4% since January 2025, amid mixed signals such as slowing job and wage growth. President Trump has publicly called for rate cuts, citing weak payroll numbers and slowing domestic activity.

Despite these headwinds, global equity markets have shown resilience. The S&P 500, for instance, has regained ground after a soft start to the year—highlighting a historical trend: markets often rebound following periods of volatility. For long-term investors, this underscores the importance of patience and perspective.

Domestic Snapshot – A Shifting Landscape

The Reserve Bank of Australia (RBA) recently lowered the official cash rate by 25 basis points to 3.85%, marking a pivotal shift in monetary policy as inflation falls back within the RBA’s 2–3% target band. This move was supported by a steady labour market and slower price growth across key sectors.

RBA Governor Michele Bullock described the decision as a “confident cut,” suggesting the central bank believes it has inflation under control without undermining employment. However, global trade tensions and domestic productivity challenges remain.

The ASX 200 is modestly positive year-to-date. Gains have been led by defensive sectors such as financials and healthcare, while cyclical sectors like mining and discretionary retail have been more sensitive to international uncertainty. While consumer confidence remains muted, easing interest rates are expected to support a gradual recovery in household spending throughout the second half of the year.

Housing Market Snapshot: State-by-State

While South Australia continues to lead in performance, housing strength has become more widespread across the country:

South Australia – Adelaide home values rose 2.4% over the past quarter, supported by low listings and strong population growth. Most homes are selling within 30 days, and regional areas remain buoyant due to infrastructure investment and internal migration.

New South Wales – Sydney’s market is regaining momentum, particularly in premium and middle-market segments. CoreLogic reported a 1.6% increase in median dwelling values in May, reflecting improving buyer sentiment.

Victoria – Melbourne’s recovery is progressing more slowly, with subdued price growth. However, investor interest is rising on the back of tight rental supply and growing migration.

Queensland – Brisbane and regional Queensland continue to experience above-average growth, driven by demand for lifestyle suburbs and strong interstate migration.

Western Australia – Perth remains one of the nation’s top-performing markets, with annual home price growth exceeding 6%, supported by population gains and tight rental availability.

Despite higher borrowing costs, constrained housing supply and strong demand are keeping upward pressure on values in most states.

Tax Planning Tip:

As the end of the financial year fast approaches, now is the ideal time to explore tax-effective strategies. If eligible, consider making a tax-deductible personal super contribution before 30 June. Other potential opportunities include:

• Carry-forward contributions: Use unused concessional contribution caps from the past five years (available if your total super balance is under $500,000).

• Spouse contributions: Make a contribution to your spouse’s super to receive a tax offset of up to $540.

• Government co-contributions: If your income is under $60,400, you may qualify for a co-contribution from the government.

• Consider deferring retirement or redundancy to 2025/26

• Consider pre-paying tax-deductible expenses to bring forward the tax deduction. 

Speak with your adviser to confirm eligibility and ensure timing is aligned with your broader financial goals.

Synergy Team Update

We’re excited to welcome Jodi Bindig to the Synergy Private Wealth team. Jodi brings over two decades of experience in financial planning and a strong dedication to client service. Her expertise will be a valuable asset as we continue to grow and support our clients with integrity and care.

Remember: Time in the Market Beats Timing the Market

Market volatility can be unnerving—but history shows that long-term discipline often outperforms attempts to time entry and exit points.

Warren Buffett’s investing career has weathered every major crisis in the past 50 years—from the 1973 Oil Crisis to the 1987 Crash, the Dot-com Bubble, the 2008 Global Financial Crisis, and the COVID-19 pandemic. Through his firm Berkshire Hathaway, Buffett has built extraordinary wealth—by staying calm in turbulent times and focusing on long-term value.

His message is simple: market downturns are opportunities to buy quality investments at better prices. Staying the course—even when markets are unsettled—often leads to better outcomes.