Top 5 Financial Opportunities for Australian Expats in the 2025-26 Financial Year

As we step into the 2025–26 financial year, we are presented with a new set of financial opportunities shaped by regulatory changes, currency dynamics, and market shifts. This blog outlines five valuable financial opportunities for Australian expats in the new financial year, each offering actionable ways to optimise your financial position, reduce future tax exposure and bring you closer to your financial goals.

1. Maximise Super Contributions Under Refreshed FY2025–26 Limits

From 1 July 2025, superannuation contribution caps will refresh for the new financial year. The caps that apply to super contributions for the 2025-26 financial year (1 July 2025 to 30 June 2026) are as follows:

Concessional

• Concessional contributions (pre-tax) cap: $30,000, or

• Using the Carry-forward rule: up to $167,500 (up from $162,500) where eligible

Non-Concessional

• Non-concessional contributions (after-tax) cap: $120,000, or

• Using the Bring-forward rule: $360,000 over three years (for those under 75)

The refreshed limits offer excellent financial opportunities for Australian expats to boost their super balance, which can grow in a tax-friendly environment where earnings are taxed at a maximum of 15%.

Expats with a total super balance below $500,000 may also take advantage of carry-forward concessional contributions, using unused caps from the previous five years. This is particularly useful for those who haven’t contributed in earlier years and have assessable income in Australia.

Seeking professional advice can ensure you avoid excess contributions and structure deposits correctly for your tax position.

2. Transfer Balance Cap Increases to $2 Million for Tax-Free Retirement Income

From 1 July 2025, the Transfer Balance Cap (TBC), the maximum amount you can move into the tax-free pension phase of superannuation, increases from $1.9 million to $2 million. For expats nearing retirement, this presents a significant planning opportunity.

Money in the pension phase of super grows entirely tax-free, meaning no tax on interest, dividends, or capital gains. This increase allows you to shield an extra $100,000 from tax, and for couples, up to $4 million combined can be held in tax-free retirement accounts.

If you’ve previously used part of your TBC, your cap will increase proportionally. It’s important to monitor your Transfer Balance Account via the ATO to confirm your entitlement under the new cap.

Now is the time to assess your retirement planning strategy. This may involve making additional contributions under the FY2025–26 caps, consolidating super accounts, or planning the transition to pension phase.

3. Improved Borrowing Capacity for Expats as Interest Rates Fall

With Australian interest rates expected to continue declining in 2025, borrowing conditions are becoming more favourable, especially for expats interested in Australian property. Lower rates often increase borrowing capacity and improve cash flow from investment properties.

Expats have traditionally faced tougher lending criteria, including conservative assessments of foreign income (often discounted by 20–40%). However, lower rates tend to improve your ability to access finance, even if you earn abroad. This could be the right time to consider buying an investment property or refinancing existing debt.

Navigating the lending process as an expat can be complex, so it’s wise to work with a mortgage broker who understands non-resident lending policies. Some lenders offer better terms, flexibility, and product choices tailored to expats, but options vary significantly.

4. Capitalise on AUD Weakness with Strong Foreign Income

As we enter the new financial year, the Australian dollar remains historically weak against key global currencies like the USD, SGD, and EUR. For expats earning in stronger currencies, this creates a strategic advantage when converting funds into AUD.

If you're paid in a stronger currency, your money now buys more in Australia, making it an ideal time to consider actions such as adding to your Australian super, investing in Australian assets, or paying down AUD-denominated debt.

Expats planning to return home within a few years may benefit from transferring lump sums into AUD now, building reserves for future use while maximising the exchange rate. However, timing and execution matter. Consider working with a foreign exchange specialist and financial adviser to lock in favourable rates and align transfers with your broader investment or retirement goals.

5. Timing Foreign Pensions Withdrawals Before Returning to Australia

If you’re planning to return to Australia in the next year or two and hold a foreign pension, such as a Singapore CPF, Hong Kong MPF, or other international pension plan, now is the time to consider your withdrawal strategy.

Under Australian tax law, once you become a tax resident again, foreign pension withdrawals may be taxable, even if the pension was accumulated while overseas. Timing your withdrawals as a non-resident during the financial year before returning home may result in no Australian tax liability and limited tax implications in your host country.

This creates a valuable window of opportunity for expats approaching repatriation. Timing withdrawals effectively over several financial years could save thousands in future taxes. Advance planning is essential. Some foreign pension withdrawals take weeks or months to process. Working with a cross-border financial adviser can help to structure withdrawals efficiently.

Conclusion - Make the Most of this Year’s Unique Opportunities

The 2025–26 financial year presents a rare alignment of favourable currency conditions, new contribution limits, and regulatory changes that present financial opportunities for Australian Expats.

If you’re building wealth abroad, planning a return home, or eyeing retirement in the coming years, these five financial opportunities for Australian expats offer practical ways to optimise your finances. But timing, structure, and residency status all matter greatly; small mistakes can lead to avoidable tax or lost opportunities. That’s why specialised, expat-focused financial advice is essential.

If you’d like help creating a personalised strategy that leverages these changes while aligning with your long-term goals, feel free to get in touch for a complimentary initial consultation.

Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.

If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the below link:

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General Advice Disclaimer: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.