Insights October 2026
October brings warmer weather, longer days, and new spring growth. It’s a fresh chance to check in, take stock and prepare for the final stretch of the year.
The continuing concerns over inflation prompted the Reserve Bank to lift the cash rate by 0.25% to 4.6%, the highest level in 15 years. The RBA says that rising energy costs and stronger than expected economic activity also contributed to the decision.
Inflation remained above the RBA’s target range, with CPI surging to 4.0%, while the trimmed mean remained steady at 3.6%.
Consumer confidence declined 5.2% to 84.4 in September, down from 88.9 in August. This reflects concerns about cost-of-living pressures, higher interest rates and continued global uncertainty.
Australian share markets were weaker during the month with the S&P/ASX 200 retreating from the 9,000-point level as rising bond yields and expectations of higher interest rates took a toll on investor sentiment.
Oil prices remained high and volatile climbing back over US$100 a barrel, while the Australian dollar eased back towards US70 cents by month’s end.
Market movements October 2026
We are all about keeping you informed and empowered and this month's economic and market video provides a quick overview of the shifting Australian economic landscape and what’s driving market movements.
The big news was the RBA lifting the official cash rate to 4.60%, introducing new headwinds for local markets and households.
Markets navigated a challenging month characterised by persistent geopolitical stress in the Middle East, rising bond yields, and stubborn inflation fears.
Meanwhile a softer Australian Dollar and a retreat in consumer sentiment reflected growing caution.
As always, feel free to reach out if you have any questions or want to chat about your strategy.
Click the video below to view our update.
Tax Alert October 2026
Key changes for businesses, SMSFs and employers
A new range of tax measures and compliance changes were recently announced and are set to affect businesses, investors and trustees. Here’s a roundup of the latest tax news.
Why Transition to Retirement deserves a second look
For many people approaching retirement, the transition from full-time work to retirement is no longer a sudden stop. Instead, it’s often a gradual process that involves reducing work hours, maintaining cash flow and continuing to build retirement savings.
One strategy that can support this approach is a Transition to Retirement Income Stream (TRIS or TTR).i
While TTR strategies have been available for many years, they are often overlooked despite offering valuable flexibility for people in their 60s who are still working.ii
What is a TTR strategy?
A TTR strategy allows you to access some of your superannuation while continuing to work, provided you have reached your preservation age. For anyone born on or after 1 July 1964, preservation age is 60.iii
The arrangement works by transferring part of your super balance into a TTR pension account. You then receive regular pension payments while continuing to earn employment income. This can help replace lost income if you reduce your working hours or supplement your cash flow while making additional contributions to super.
Unlike a standard retirement-phase pension, a TTR pension has restrictions. Generally, you must draw a minimum pension each year and cannot withdraw more than 10 per cent of the account balance annually. Lump-sum withdrawals are generally not permitted while the TTR remains in the pre-retirement phase.iv
Who might benefit?
A TTR strategy may suit people who:
- want to reduce their working hours without a significant drop in income
- are approaching retirement but are not ready to stop work completely
- earn a moderate to high income and wish to boost superannuation through salary sacrifice
- want greater flexibility in planning their transition from work to retirement.
For example, someone aged 60 might decide to move from working five days a week to three days a week. By drawing a pension from their super, they can help replace part of their lost income and ease gradually into retirement.
Combining work income and pension payments
One of the key attractions of a TTR strategy is the ability to combine employment income with pension payments.
If you are aged 60 or over, pension payments received from a TTR income stream are generally tax-free in your hands. Instead of experiencing a substantial reduction in disposable income, a tax-free pension payment can help bridge the gap.
The tax-saving strategy
Another commonly used TTR strategy involves salary sacrifice.v
In this approach, an employee diverts part of their salary into superannuation through concessional contributions, which are generally taxed at 15 per cent within the super fund. The reduction in take-home pay is then partially replaced through tax-free TTR pension payments.
For people on higher marginal tax rates, this may improve tax efficiency because income that would otherwise be taxed at personal rates may instead be contributed to super and taxed at a lower rate. The TTR pension can then be used to maintain cash flow.
In some circumstances, this strategy may also help increase retirement savings while maintaining a similar standard of living before retirement.
Is a TTR strategy right for you?
A Transition to Retirement strategy can provide valuable flexibility for people who want to scale back work, supplement their income or potentially improve the tax efficiency of their retirement planning.
But the benefits depend heavily on individual circumstances, including age, income level, super balance, retirement objectives and tax position. What works well for one person may offer little benefit for another.
If you are approaching retirement and would like to explore whether a TTR strategy could help you achieve your goals, please contact our office. We can help assess whether the approach aligns with your broader retirement and financial planning objectives.
i Transition to retirement | ATO
ii iii Transition to retirement - Moneysmart.gov.au
iii Preservation age | ATO
iv TRIS requirements | ATO
v Using TTR to save on tax | Moneysmart