For many professionals in mining and resources, the question is no longer whether to help their children financially, but how to do so in a way that considers potential tax implications and future flexibility.
With the introduction of the Division 296 tax on superannuation balances above $3 million, along with proposed tax changes from the 2026 Federal Budget, many leaders in mining and resources are rethinking how and when wealth is transferred.
Rather than retaining additional wealth in structures that may be subject to higher taxation, some parents are exploring earlier transfers of capital. This allows the next generation to benefit at a time when support may have the greatest impact, while also giving families the opportunity to see that support in action.
At the same time, rising property prices, growing superannuation balances and increasing complexity around tax and equity-based remuneration are making financial decisions more interconnected. Supporting adult children now often sits alongside broader considerations around structuring wealth, managing tax and planning across generations.
Whether contributing towards a home deposit, gifting money, making super contributions for children or transferring assets such as property, these decisions are typically made with the best intentions. However, they can carry implications that are not always immediately clear.
Understanding how these elements fit together can help families make more informed decisions.
Looking Beyond the Immediate Benefit
Financial support can take many forms, from one-off cash gifts through to transferring assets or funding ongoing support.
In Australia, there is generally no specific tax on a genuine cash gift received, meaning it is typically not treated as assessable income for the recipient.
However, this simplicity does not always extend to other forms of support.
When transferring assets other than cash, such as shares or property, the Australian Taxation Office generally treats the transaction as a sale from you, at market value on the date of transfer, which can result in tax implications for the person making the transfer of assets.
For individuals with higher incomes or growing superannuation balances, these decisions often interact with broader tax planning, retirement objectives and overall wealth positioning. In practice, it is the interaction between these decisions that often creates complexity, rather than any single strategy on its own.
A Practical Approach: Structuring Support Through Loan Agreements
For many families, financial support sits somewhere between a gift and a longer-term wealth transfer.
With housing affordability continuing to present challenges, there has been a shift towards more structured approaches. One approach we see families consider is a formal loan arrangement between parents and adult children.
As explored in our article gift or loan arrangements when supporting adult children financially, the structure chosen can have lasting implications for both asset protection and estate planning outcomes.
Rather than transferring funds outright, the support may be documented as a loan providing clarity around how it is intended to be treated over time.
This approach can assist with:
- Clarity
Defining whether support is to be repaid or considered part of an early inheritance - Family equity
Ensuring fairness where multiple children are involved - Asset awareness
Providing structure if family or financial circumstances change - Flexibility
Allowing arrangements to evolve over time, including the potential for partial forgiveness
For professionals assisting children into the property market, this can provide a more structured way to offer support, while helping families think through how those funds may be treated if circumstances change, such as a child’s spousal separation.
Transferring Property: Important Considerations
Property remains a key focus when supporting adult children.
While transferring property is possible, it is not simply an administrative exercise. From a taxation perspective, these transactions are generally assessed at market value and may trigger capital gains tax for the original owner, as well as potential transfer and stamp duties for the recipient.
Beyond tax, ownership transfer brings broader implications:
- Control passes to the recipient
- The asset becomes part of their financial position
- Future decisions relating to property sit with the new owner
As a result, property transfers are typically less often considered within a wider financial planning context.
Superannuation and Capital Allocation
Superannuation plays a significant role in wealth accumulation for many professionals in mining and resources. However, as balances grow, the way additional wealth is directed becomes increasingly important.
Recent changes and proposed measures relating to higher superannuation balances, including Division 296, have increased focus on how mining and resources executives and business owners manage their money across different structures, particularly where additional tax may apply at higher thresholds.
In this context, some individuals may consider how to support adult children earlier, and whether part of that support may be directed through superannuation. This may include strategies such as contributing to a child’s superannuation under the First Home Super Saver Scheme or making contributions that may support their longer-term super balance and tax position. While these approaches are not suitable in all situations, they can form part of a broader strategy where the timing, purpose and accessibility of funds are considered.
From a structural perspective, these types of strategies can also provide an additional layer of discipline around how funds are used, given they are subject to superannuation access rules, rather than being immediately available as cash.
For some families, this can provide greater comfort in supporting children financially, particularly when compared to transferring funds directly.
More broadly, supporting adult children may form part of a wider consideration of how capital is allocated across:
- superannuation
- personal investments
- family support
For some, this becomes less about any single decision, and more about how wealth is managed tax effectively across a multigenerational family group.
ESS Vesting: A Key Planning Opportunity
Employee share schemes are a significant component of remuneration for many professionals in mining and resources.
When shares vest, this typically represents a taxing point, with the value included as income in that year. For higher-income earners, this can create a material tax liability, particularly where multiple vesting events occur.
However, vesting events also present an important planning moment.
Once shares vest, individuals must decide how those assets fit within their broader financial position. This may involve:
- retaining the shares
- selling a portion to meet tax obligations
- reallocating capital across other structures
In practice, these decisions may extend to:
- funding superannuation contributions (subject to contribution limits)
- supporting adult children financially
- managing concentration risk across assets
For individuals with growing super balances, vesting events can act as a natural checkpoint to reassess whether additional wealth is best retained, contributed to super, or distributed more broadly across the family and across generations.
Managing Wealth Across Generations
Supporting adult children financially often forms part of a broader objective: managing wealth across generations.
For professionals with diversified assets across superannuation, investments and equity participation, these decisions require a coordinated approach. This typically involves being clear on the purpose of support, how assets are structured and transferred, the timing of decisions in balancing immediate support with long-term outcomes, and maintaining open communication across family members.
In practice, these decisions often require coordination across financial, legal and taxation considerations, particularly where balances are higher and objectives span multiple generations.
As explored in our article on the intergenerational wealth transfer underway across Australia, these decisions are increasingly being brought forward and approached in a more structured way.
Final Thoughts
For mining and resources professionals, where income, bonuses and equity participation can vary significantly over time, decisions about helping adult children financially are rarely isolated.
They often form part of a broader financial position, including how wealth is structured across superannuation, personal investments and family support strategies. With evolving tax settings and increasing complexity around higher superannuation balances, taking a coordinated approach can assist in supporting adult children when they need it most, while also considering the potential impact of future tax changes.
Whether it is structuring loan arrangements, navigating property transfers or making decisions at key points such as share vesting, these conversations can benefit from being considered within a broader financial planning framework.
A proactive review can help clarify how these decisions interact and remain aligned with both current priorities and longer-term objectives.
For those navigating these decisions, a confidential discussion can help bring clarity to how different strategies may apply in practice. You are welcome to contact James Marshall +61 (0) 7 3007 2000 or email contact@resourcesunearthed.com.au.
To learn more about James, visit this link.
Further reading:
Gift or Loan? Supporting Adult Children Financially
Resources Unearthed is a solutions hub that connects senior executives, established professionals, and business owners in mining and resources with proven specialist advisers.
Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth ABN 54 139 889 535 AFSL 357306. This advice is general and does not take into account your objectives, financial situation, or needs. You should not act on it without first obtaining professional financial advice specific to your circumstances.
*Please note: For financial advice and services relating to this matter that are not offered under the Fortnum Private Wealth AFSL, in accordance with our collaborative advice model, when required, such matters are referred to appropriately qualified professionals.
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