A staggering 70% of family members struggle to discuss their family wealth, and one in five avoid discussing it altogether until a crisis forces the conversation. A recent study by J.P. Morgan's Family Wealth Institute reveals the emotional strain of intergenerational wealth.

The proposed capital gains tax changes have sparked fresh discussions on inheritance and business succession, with wealth advisory Fitzpatricks WA's Garry Symonds noting that his clients are more anxious than ever. 'I'm not sure we've spoken about much else in the last two weeks,' he said. The uncertainty has left business owners and families alike scrambling to understand the implications of the proposed legislation.

Currently, businesses with a turnover of up to $2 million and net assets of up to $6 million don't need to pay any capital gains tax if the owner is over 55 and has held their business for at least 15 years. They also receive a further reduction on top of the existing concession, making their capital gains tax discount 75%. However, the proposed changes threaten to disrupt this relatively stable environment, leaving many families uncertain about their financial future.

Symonds, a principal partner at Fitzpatricks WA, said that his role requires a nuanced understanding of family dynamics and long-term strategy. 'Clients aren't looking for smarter advisers, they're looking for safer conversations,' he said. 'You need to know their story and understand their values to earn the right to influence those decisions.'

The emotional strain of intergenerational wealth is a significant concern for families, with Symonds noting that every client has come to him with the same question: 'Is my family going to be okay, not financially okay but actually okay?' The answer to this question isn't always clear-cut, but it's a question that Symonds believes is crucial in shaping the future of family wealth.

The government continues to deliberate on the proposed changes, leaving families to navigate the uncertainty. Symonds remains cautious, saying, 'The hardest thing is not really knowing what the detail is going to look like.' Families in WA are torn apart by the anxiety and insecurity of an uncertain financial future surrounding the proposed changes to capital gains tax.

Symonds also notes that clients have been coming to him with the same question, 'Is my family going to be okay?' They're not just concerned about their financial security, but also their family's well-being. This question is at the heart of shaping the future of family wealth.

The lack of clarity is causing significant stress and anxiety for families and business owners, with Symonds stating that he doesn't know what the final detail of the proposed changes will look like. However, one thing is certain – families are struggling to make informed decisions about their financial futures due to the uncertainty surrounding the proposed capital gains tax changes.

'You need to know their story and understand their values to earn the right to influence those decisions.'

  • Garry Symonds, Principal Partner at Fitzpatricks WA