A massive shift in wealth is quietly happening across Australia. It’s called intergenerational wealth transfer, and it’s about reshaping families, financial plans, and the future of the economy.
We’re talking trillions of dollars expected to pass from one generation to the next over the coming decades. For families, business owners and individuals, it presents both opportunities and risks.
At Rubiix Business Accountants, we believe knowledge is power. So, let’s unpack what intergenerational wealth is, how it works, and most importantly, what you can do to be ready.
At a glance...
Australia is experiencing a historic wealth shift, with over $5.4 trillion will be passed down by 2050. The way families plan today will shape financial outcomes for decades.
What’s Happening?
Wealth is being transferred through wills, family trusts, super, gifts, and business succession, each with different legal and tax implications.
Why It Matters
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What to Do
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With the right guidance, families and business owners can protect their wealth and pass it on with clarity and confidence. Here's what you need to know.
What Is Intergenerational Wealth Transfer?
Intergenerational wealth transfer is exactly what it sounds like (the passing down of assets from one generation to the next), and in Australia, this can include everything from property, superannuation, and shares to businesses and even family heirlooms.
Traditionally, it happens through wills and estates, but more often these days, it also includes living gifts, trust structures, and succession plans.
But here’s what makes it more than just a private family matter: we’re in the middle of the biggest wealth transfer in Australia’s history.
Recent estimates from the Productivity Commission now suggest over $5.4 trillion will pass from Baby Boomers to their children and grandchildren by 2050, with much of it tied up in housing and superannuation.
This isn’t just about inheritance anymore. It’s a structural shift in how wealth, opportunity, and financial power will be distributed across the country for decades to come.
Why It Matters More Than Ever
Most of the conversation around wealth transfer has focused on the "how": how much is being passed on, who gets what, and how financial advisers can help. But we rarely stop to ask a bigger question:
Is this transfer actually good for Australia?
On one hand, it’s a sign of financial success. Many older Australians have worked hard, invested wisely, and now have something meaningful to pass on.
But it’s also a product of decades of explosive asset growth, especially in the housing market, fuelled by generous tax concessions, low interest rates, and limited policy intervention.
The result? Home ownership among Boomers has surged, while younger Australians are struggling to break into the market.
In fact, Boomers are three times more likely to own their home outright than Millennials were at the same age, with that wealth gap is only set to widen with this coming inheritance boom.
So, why does it matter? Because the choices we make today about how wealth is structured, transferred, and taxed will affect not just our families, but our future as a society.
At Rubiix, we believe the answer isn’t to avoid inheritance - it’s to plan it well. With the right wealth advice, this intergenerational transfer can build security and opportunity across generations, rather than entrench division.
How Does Intergenerational Wealth Transfer Happen?
There’s no one-size-fits-all approach when it comes to passing down wealth. In Australia, families use a mix of legal, financial, and strategic tools to make it happen, often with very different outcomes depending on how well it’s planned.
Below are some of the most common methods of intergenerational wealth transfer, and what you need to know about each:
1. Wills and Estates
The most traditional (and often first) way wealth is passed down. A legally valid will outlines who gets what after you pass away.
But here’s the catch: wills alone aren’t always enough.
Without a clear estate plan, assets can be tied up in probate, and your intentions might be challenged.
2. Family Trusts
Family trusts allow you to control how wealth is distributed over time. They're often used to manage tax outcomes, protect assets from legal disputes, or ensure young beneficiaries don’t receive too much too soon.
However, they require careful setup and ongoing compliance with tax rules.
3. Gifting While Living
Some parents or grandparents choose to gift money, property, or shares during their lifetime. This can help children get into the housing market, support education, or fund a business venture.
While generous, these gifts can still have tax or Centrelink implications if not carefully managed.
4. Business Succession Planning
Passing on a family business is more than handing over the keys. It involves legal restructuring, tax planning, and often years of mentorship.
A formal succession plan helps clarify who takes over, what their role will be, and how ownership is transferred (or shared) over time.
This is where qualified business accountants play a critical role in ensuring continuity, legal compliance, and tax efficiency.
5. Superannuation Death Benefits
Super doesn’t automatically form part of your estate, and who receives it depends on your nominated beneficiaries. If left to adult children or non-dependents, parts of your super may be taxed upon death.
That’s why proper nomination forms and strategic planning are critical.
Each method has different implications, especially around tax, legal issues and family expectations.
Tax Risks to Watch Out For
Let’s be honest - no one likes unexpected tax bills.
That’s why smart planning is essential when it comes to transferring wealth. Here are a few areas to keep in mind:
1. Capital Gains Tax (CGT)
Transferring assets like investment properties, shares or businesses may trigger CGT, especially if they’re sold or transferred outside of a deceased estate.
2. Superannuation Death Benefits Tax
Did you know that non-dependent beneficiaries (like adult children) may have to pay tax on super death benefits? It’s a hidden trap for many.
3. Stamp Duty
In some cases, transferring property between family members can lead to stamp duty costs, unless exemptions apply.
4. Family Trust Distributions
Improper use of family trusts or unclear trust deeds can raise red flags with the ATO and lead to reassessments or penalties.
A proactive tax strategy, developed with the help of skilled financial accounting professionals (like us), can help reduce or eliminate many of these risks.
Navigating Family Dynamics Without the Drama
Wealth might be about numbers on paper, but transferring it is deeply personal. Behind every inheritance or business handover is a web of relationships, expectations, and emotions.
Handled poorly, it can spark confusion, conflict. even permanent family rifts. Handled well, it can strengthen bonds and give everyone a sense of clarity and respect.
Here are some of the most common pressure points we see:
- Unequal distributions: One child gets the house, the other gets shares. Even with good intentions, this can create resentment.
- Blended families: Stepchildren, ex-partners, second marriages... modern families are rarely simple.
- Outdated documents: A will written 15 years ago may no longer reflect your wishes or your family’s situation.
- Business succession: Maybe only one child wants to take over the business - or worse, they all do.
The fix? Open conversations early, and revisit your plan regularly. Bring your family into the process (with professional support if needed), and document your intentions clearly to avoid second-guessing or legal battles down the line.
At Rubiix, we don’t just look at spreadsheets. We offer up personal, actionable financial guidance to help you navigate the transfer with empathy, structure and long-term thinking.
What To Look Out for in the Future
Intergenerational wealth transfer is no longer a niche concern. It’s a major financial planning issue, and it’s only going to grow.
Here’s what to keep in mind moving forward:
- Start estate planning early. Don’t wait until it’s too late. Have a will, power of attorney and strategy in place.
- Review your plan regularly. Life changes. So should your wealth transfer plan.
- Consider asset protection, especially if family members are in high-risk professions or relationships.
- Educate the next generation. Help them become good stewards of the wealth they’ll inherit.
- Get the right team around you. Business accountants, financial advisers and estate lawyers working together.
Turning a Historic Wealth Shift Into a Lasting Legacy
Australia is facing the biggest wealth shift in its history, and with it comes a rare chance to shape the future, not just for your family, but for the economy we all share.
Handled well, it’s an opportunity to preserve hard-earned assets, minimise risk, and support the next generation with confidence.
Handled poorly? It can lead to tax headaches, family conflict, and lost potential.
That’s where we come in.
At Rubiix, we work with individuals, families and business owners to plan smart, tax-effective intergenerational wealth strategies. Whether you’re just getting started or need to review your existing plan, we’re here to guide you with:
- Personalised estate and succession planning
- Tax minimisation strategies
- Family trust and business structure advice
- Superannuation and retirement planning
- Open, practical communication with your family
It’s not just about passing on wealth, it’s about passing on peace of mind, security and clarity.
Contact us today to make the most of your family’s financial future.
Join the Conversation
Have questions about intergenerational wealth transfers in Australia? Want to learn more about how to leave a legacy to support your family or business goals? Leave a comment below or follow us on LinkedIn to keep the conversation going.