FIRE in Australia: Super Access, Capital Gains Discount, and the Maths in AUD

The FIRE movement has a significant Australian community — and the Australian financial system actually offers some unique structural advantages for FIRE seekers that the US system doesn't have.

The Australian FIRE number

The super access problem for early retirees

Australian super cannot be accessed until preservation age — 60 in 2026 (rising to potentially 62-65 in future legislation). If you want to FIRE at 45, you need 15 years of bridge assets outside super. This means:

• Phase 1 (age 45-60): Live off ETF portfolio and any passive income outside super
• Phase 2 (age 60+): Access super tax-free — dramatically reducing the drawdown rate on the external portfolio

The 50% CGT discount: an Australian FIRE advantage

Assets held for more than 12 months attract only 50% of the capital gain in taxable income. For someone in the 30% marginal rate, effective CGT on long-term gains is just 15%. This makes ETF investing outside super highly tax-efficient compared to countries with full CGT on investments.

The Age Pension: FIRE's long-term backstop

The full Age Pension in 2026 is approximately $1,100/fortnight for singles ($28,600/year). Available from age 67, subject to asset and income tests. For lean FIRE retirees, the age pension reduces the super and portfolio drawdown needed significantly after 67.