Affinity Insights – Issue 27 March 2025

Welcome to our 27^th edition of Affinity Insights.

In the first few months of 2025, financial markets experienced a period of volatility, with the Reserve Bank of Australia cutting rates for the first time in 5 years, while keeping a close eye on inflation and labour market indicators.

As we head into Autumn, Trump has surprised the world with the speed of implementation of his agenda. We discussed this and more during our first Market Update which was held on 19^th March. If you could not attend the presentation, you can view it here.

We hope you enjoy this issue of Affinity Insights, and we welcome any feedback or suggestions for future topics.

From Rodney M. DeGabriele

The 2025 Federal Budget provides cost of living relief through tax cuts, lower power bills, reduced co-payment for medicines and other measures.

Summary of key proposals:

• All taxpayers will receive modest tax cuts starting from 1 July 2026.
• Eligible Australian households and small businesses will receive an additional energy rebate of $150.
• The general co-payment for Pharmaceutical Benefits Scheme medicines will reduce to $25 for individuals who don’t hold a concession card.
• All families will be eligible for at least 72 hours per fortnight (three days per week) of subsidised childcare without having to satisfy the activity test.
• Concessions will be applied to reduce student debts and repayments.
• The ‘Help to Buy’ program will be expanded to include higher income and property price caps.

Note: These changes are proposals only and may or may not be made law (unless stated otherwise).

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We conducted our first Market Update with our Investment Committee on Wednesday, 19^th March. It was a huge success.

We reflected on the last quarter of 2024 and provided an update on the 2025 market outlook.

If you missed the webinar or would like to re-watch it, you can view it here.

The US market has underperformed the rest of the world by around 10% since late last year. While 10% may not seem like a lot in the grand scheme of things, this underperformance represents a break in a long period of US outperformance versus the rest of the World.

In this month’s Market Update, we take a look at the cause of this underperformance and whether the US will continue to hold the equity market trophy in the years ahead.

You can read the full article here.

Molly McGinn

A message from Molly: I am writing to share some important news with you. After much consideration, I have decided to take a career break to pursue a long-held dream of mine; traveling and exploring new cultures. This decision has come from a place of personal growth, exploration, and a desire to enhance my worldviews.

Beginning in April, I will embark on a journey that will take me to Mexico, South America, and Europe. This adventure is something I have been passionate about for years and I look forward to the enriching experiences which lie ahead of me.

I take this career break as an opportunity to recharge, gain new perspectives, and return with renewed energy and creativity. I am looking forward to sharing my experiences and reconnecting with you on my return!

Molly has been an integral part of Affinity Private Advisors and has contributed to many of our company’s successes. We wish her a very safe and happy break.

Jessica Genovas

On the 1^st of March 2025, Jessica was registered on the Financial Adviser Register as a Provisional Financial Adviser. Congratulations Jessica!

ASIC defines a provisional financial adviser (relevant provider) as one who is undertaking work and training in accordance with s921B (4) of the Corporations Act 2001. An individual progresses to a provisional financial adviser once they have passed the financial adviser exam and been authorised by their licensee.

In the advice industry new entrants undergoing their professional year (PY) begin in an associate role. From sitting in on client meetings, shadowing their adviser and producing advice documents, this back-end administrative role is often seen as a stepping stone to becoming an adviser.

Jessica will now take more control in client meetings and will begin to provide financial advice under Rodney’s direct supervision.

What if there were a government handout that even someone with $10 million in assets could comfortably get? What if that handout were worth conservatively$60,000 – and more than $90,000 if you lived in certain parts of Australia? And what if more than 1 million people who were entitled to the handout did not claim it?

Well, there is one. It’s the Commonwealth Seniors Health Card.

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