Intergenerational Wealth Transfer in Australia

Intergenerational Wealth Transfer in Australia: 

What Families Need to Know

Australia is entering the largest intergenerational wealth transfer in its history. Over the next two decades, an estimated $3.5–$5.4 trillion will be transferred from older Australians to younger generations. This shift is expected to accelerate through the 2030s, as Baby Boomers (born 1946–1964) move further into retirement and begin gifting assets or passing on estates.

The intergenerational wealth transfer in Australia will impact families, property markets, superannuation balances, investment strategies, and long-term financial security. Without proper planning, however, much of this wealth may not last.

Why wealth transfer planning matters

Research shows:

• 70% of inherited wealth is lost by the second generation
• 90% is lost by the third generation
• Only 5% of families successfully grow or preserve wealth across generations

These figures highlight why estate planning, tax strategies, and financial education are critical during periods of wealth transfer.

Who benefits from the intergenerational wealth transfer?

Generation X (1965–1980)
Gen X Australians are often receiving inheritances while still working, running businesses, and supporting their children. Average household wealth now sits around $1.31 million, largely driven by property ownership.

Millennials & Gen Z
Younger generations will receive the bulk of transferred wealth. Many already rely on the Bank of Mum and Dad (BOMD), which is now Australia’s 10th largest lender when helping fund first-home deposits and education costs.

Women
Women are expected to inherit a growing share of wealth due to longer life expectancy. Female controlled assets are forecast to rise sharply, influencing investment decisions toward long-term security and ethical outcomes.

Key markets affected

• Housing: Inherited wealth and gifting continue to drive property demand and prices
• Financial markets: Increased capital flowing into shares, managed funds, and ESG investments
• Superannuation: Large balances being transferred, alongside rising super guarantee contributions

Are you and your family properly prepared for intergenerational wealth transfer?

Estate planning, tax strategies, succession planning, and financial education are critical to ensure wealth is transferred efficiently and preserved for future generations.

Here is a practical checklist for families navigating wealth transfer.

Use this checklist to start informed, structured conversations about wealth transfer and estate planning.

1. Legal foundations

• Do you have a current, valid Will?
• Does your Will reflect your current family and financial situation?
• Have you considered testamentary trusts for tax efficiency and asset protection?
• Are enduring power of attorney and medical directives in place?

A valid, up-to-date Will is the cornerstone of effective estate and wealth transfer planning. If you pass away without a Will (known as dying intestate), your estate will be divided according to state laws and formulas for who will receive what. This may not reflect your or your family members wishes and can lead to disputes or delays.

2. Superannuation planning

• Are your superannuation beneficiaries clearly nominated?
• Are nominations binding and up to date?
• Have tax implications on super death benefits been considered?

3. Asset and tax strategy

• Have you identified which assets may trigger capital gains tax?
• Is gifting assets during your lifetime more tax-effective than passing them through an estate?
• Are assets appropriately diversified beyond property?

4. Family communication

Have expectations been discussed openly with beneficiaries?
Are family members clear on who receives what, and why?
Would a facilitated family meeting help avoid future disputes?

5. Next generation readiness

• Do beneficiaries understand budgeting, investing, and wealth management?
• Is financial education part of your wealth transfer plan?
• Are safeguards in place for younger or vulnerable beneficiaries?

6. Professional support

• Have you spoken with an accountant or financial adviser about your strategy?
• Is your plan reviewed regularly as laws, assets, and family circumstances change?

At Cashflow Financial, we help families plan for the intergenerational wealth transfer with clear strategies, smart tax planning, and long-term thinking. Whether you’re passing on wealth, receiving it, or preparing the next generation, our advisors can assist you and your families legacy.

Contact Cashflow Financial today to book your estate and wealth planning review.