As baby boomers prepare to pass down their accumulated wealth, experts predict that billions of dollars in assets will change hands over the next two decades, with significant implications for the region’s economy and real estate market.
According to a report from the Productivity Commission, the total value of wealth transfers in Australia, including both inheritances and gifts, reached over $120 billion in 2018. While this figure represents a national average, the Gold Coast is expected to see a disproportionate share of this transfer due to its popularity among retirees.
“The Gold Coast is uniquely positioned in this wealth transfer landscape,” says David Kaplan, Co-founder of Willed, an online platform for end-of-life planning. “With its desirable lifestyle and enviable year-round climate, we anticipate a significant influx of wealth into the region as baby boomers pass on their assets.”
Queensland’s Inheritance Laws
There are some unique inheritance laws in Queensland that anyone thinking of moving should be aware of.
Unlike some other states, Queensland does not have notional estate laws, which means that assets held in structures like superannuation funds or family trusts may not form part of a person’s estate for inheritance purposes.
“It’s important to understand Queensland’s specific inheritance laws,” Kaplan advises. “Proper estate planning ensures that your assets are distributed according to your wishes, whether you’re a long-time local or a recent retiree to the area.”
The Gold Coast Retirement Boom and Its Impact on Wealth Transfer
The Gold Coast has long been a magnet for retirees from across Australia, drawn primarily by its beautiful year-round climate and outdoor lifestyle. This influx of retirees is expected to amplify the effects of the wealth transfer in the region.
“We’re seeing more and more people choosing to spend their golden years on the Gold Coast in Lifestyle Retirement Villages“, says Kaplan. “This is not just bringing people into the region, but also significant wealth.”
For those moving to the Gold Coast from other states, it’s important to review and potentially update estate plans to ensure they comply with Queensland laws.
The Scale of the Wealth Transfer
Specific figures for the Gold Coast are not available, but the national statistics provide insight into the scale of the wealth transfer.
In 2018-19, the average reported value of an inheritance in Australia was $125,000, with a median value of $45,000.
Given the Gold Coast’s higher property values and concentration of wealth, these figures could be substantially higher in the region.
Planning for the Future
Proper estate planning is crucial, whether you are living on the Gold Coast already or planning to retire there.
“Understanding your options and obligations is key regardless if you’re passing on wealth or inheriting it,” says Kaplan. “This might mean thinking about how to protect inherited assets like real estate and land, understanding the tax implications of receiving an inheritance, or how to pass on wealth to a charity or organisation you are invested in for the future.”
The impending wealth transfer presents both opportunities and challenges for the Gold Coast. And while it will undoubtedly support and push up prices for the region’s real estate —particularly prime real estate — it also raises questions about wealth inequality and affordability for locals in a property market that’s already red hot.
