An unexpected critical illness or accident that results in the breadwinner being unable to work can have a devastating effect on a family, especially when the breadwinner does not have Trauma Insurance. I've witnessed firsthand the devastating financial impact that critical illnesses can have on families. While most working Australians understand the importance of health insurance and income protection, there's one crucial safety net that remains significantly under-utilised: trauma insurance. The statistics paint a sobering picture that every working Australian should understand.

The Harsh Reality of Critical Illness in Australia

The numbers don't lie, and they should concern every working Australian. Each year, more than 150,000 Australians receive a cancer diagnosis [1]. Cardiovascular disease affects over 1.2 million Australians, often leading to heart attacks [1]. Additionally, more than 350,000 Australians suffer strokes annually, with over one-third experiencing at least one permanent impairment as a result [1]. These aren't distant statistics – they represent real people whose lives and financial security were turned upside down in an instant.

This comprehensive analysis examines the Australian Government's proposed Division 296 Tax, a controversial superannuation reform that would impose an additional 15% tax on earnings from superannuation balances exceeding $3 million, including unprecedented taxation of unrealised capital gains. After extensive research and analysis of government documents, professional submissions, industry responses, and stakeholder perspectives, this report concludes that Division 296 Tax represents a fundamental failure of the policy development process that will create more problems than it solves.

The central opinion expressed in this analysis is that while addressing superannuation tax concessions for high-wealth individuals is a legitimate policy objective, Division 296 Tax achieves this goal through fundamentally flawed mechanisms that violate established taxation principles, create significant unintended consequences, and ignore superior alternatives proposed by the professional tax community.

UPDATED: 1.09.25
Although the proposed Division 296 tax (the "$3 million super tax") was slated for a July 1, 2025, commencement, the legislation is still pending parliamentary approval. Consequently, its final form, implementation timeline, and practical effects are not yet clear.

Life is unpredictable. For many Australians, the risk of serious illness, disability, or death is low probability but very high impact — loss of income, medical bills, mortgage repayments, family hardship. Personal insurance helps manage those risks.

Some data:

• The Value of Group Insurance in Superannuation report found that about 30% of working members of super funds will experience at least one insured event (death, disability etc) over their working life. (Actuaries Australia)
• Life, TPD, and Income Protection (IP) claims via superannuation funds paid roughly A$6.6 billion in new claims in 2021 alone. (ASFA)

These figures show that insurance is not a “nice-to-have” but an essential part of financial resilience.

Property investment remains one of the most common routes to wealth building in Australia. Western Australia, including Perth and regional WA, has been attracting renewed interest in 2025, thanks to rising rents, constrained supply, and relatively strong capital growth in certain areas. But it is not without risk. Before investing in property in WA, or anywhere, you need to think carefully about how it aligns with your finances, goals, risk tolerance, and timeframe.

Advantages of Property Investment in Western Australia

Here are some of the specific benefits WA offers, backed by recent data:

1. Strong Rental Yields in WA
   • Apartments in WA have delivered 6.2% gross yields as of year ending March 2025. (Camden Professionals)
   • Regional WA shows even higher yields; some units/houses outside Perth are returning around 8–8.5%+ gross yields. (Savings)
   • Within Greater Perth, yields for houses are more modest (~4.5%) but units tend to be higher. (API Magazine)
2. Capital Growth Potential
   • WA dwelling values have grown strongly over the past few years. From March 2020 to March 2025, Perth dwelling values rose ~75.4%, and regional WA nearly 80%. (Savings)
   • Certain property types in Perth — e.g. duplexes, smaller houses (e.g. two-bedroom) — have seen large recent increases. For example, two-bedroom duplexes rose about 22.3% in one year to a median price ~$615,000; two-bedroom houses ~21.2% to ~$665,000. (API Magazine)
3. Strong Rental Demand and Low Vacancy
   • Vacancy rates in Perth had been low (e.g. ~2.5% in the first half of 2025). (loans.com.au)
   • Rents have increased significantly: for houses and units in Perth year-on-year rent rises of 4.7% (houses) and 7.4% (units). (openagent.com.au)
4. Relative Affordability Compared to Eastern Capitals
   • While WA prices have grown, for many investors Perth is still more affordable than Sydney, Melbourne, etc., in terms of what you get per dollar. Some suburbs in Perth still offer lower entry price points. (propertyfinanceinvest.com.au)
5. Diversification
   • Adding property to a portfolio that may include shares, cash, superannuation, etc., diversifies the kinds of risk you face.
   • Regional properties especially diversify geography ‒ exposure to different economic cycles (e.g. mining, agriculture, tourism) compared to metro Perth. (stageproperty.com.au)
6. Tax and Policy Benefits
   • Australia allows negative gearing (losses can offset other income) and depreciation deductions for investment property expenses. (Moneysmart)
   • Some WA-regional areas may benefit from government incentives, grants, or favorable tax treatment depending on policy. (Providence Property)