What the coming generational shift means for families — and what to do about it now.
Australia is on the cusp of the largest intergenerational wealth transfer in its history. The Productivity Commission has estimated that roughly $3.5 trillion in assets will move from older Australians to their children and grandchildren over the next 20 years — driven by the maturing of the baby boomer generation, decades of property appreciation, and one of the world’s most successful compulsory superannuation systems.
For most families, this isn’t an abstract demographic story. It’s a series of very personal questions. How do we pass on what we’ve built? How much is too much? How do we keep the family — and the wealth — intact across generations?
The numbers behind the shift
A few features make this transfer distinctive:
- It’s concentrated. A significant share of household wealth sits with Australians aged 60 and over, who hold the bulk of property, superannuation and investment assets.
- It’s housing-heavy. For many families, the family home is the single largest asset — and with median Sydney and Melbourne house prices well into seven figures, even modest portfolios carry substantial value.
- It’s happening earlier. Increasingly, parents are gifting “living inheritances” — helping with house deposits, school fees and business capital — rather than waiting for estates to settle.
- It’s super-charged by super. Today’s retirees are the first generation to spend their full working lives under compulsory super. The death benefit taxation rules attached to those balances are now a meaningful planning issue.
Why “just leaving it in the will” is no longer enough
A simple will worked when estates were simpler. Today’s families typically have:
- Blended structures, second marriages, and adult children at very different life stages.
- Wealth held across personal names, companies, family trusts, SMSFs and offshore assets.
- Adult children with their own tax, asset protection and relationship considerations.
- Genuine concern about the capability — not just the entitlement — of inheritors.
Without planning, families risk three predictable outcomes: unnecessary tax, family conflict, and wealth that doesn’t survive its first encounter with the next generation.
What good preparation looks like
The families navigating this transition well tend to do four things deliberately:
- Start the conversation early. Inheritance is rarely the right topic for a single, dramatic disclosure. Drip-feeding context — values, structures, expectations — over years is far more effective than a single sit-down.
- Get the structures right. Family trusts, testamentary trusts, super death benefit nominations and SMSF succession all need to be reviewed together. A change in one often ripples through the others.
- Build capability, not just capital. Many families now involve adult children in investment committee meetings, philanthropic decisions or property management — giving them reps before they hold the cheque book.
- Plan for the tax. Capital gains on inherited assets, the 17% (plus Medicare) tax on taxable super components paid to non-dependants, and the timing of estate distributions can all be optimised with planning — but only before the event.
A generational opportunity, not just an event
The wealth transfer is often discussed as a risk to be managed. It’s equally an opportunity — to align money with purpose, to launch the next generation with sound foundations, and to embed philanthropy and stewardship into the family’s culture.
The families who treat this as a decade-long project, not a single estate event, are the ones whose wealth — and whose relationships — tend to survive intact.
If you’d like to map what this looks like for your own family, that’s exactly the kind of work we do.
General Advice Warning
The information in this article is general in nature and has been prepared without taking into account your personal objectives, financial situation or needs. It does not constitute personal financial, tax or legal advice. Before acting on any of the information, you should consider its appropriateness having regard to your own objectives, financial situation and needs, and seek professional advice from a qualified financial adviser, accountant or lawyer. Taxation outcomes depend on individual circumstances and current legislation, both of which may change. Ora Private Wealth and its representatives do not accept liability for any loss or damage arising from reliance on the information contained in this article.
