Non-Marketable Securities in Australia: 2025 Guide for Investors

When most Australians think about investing, their minds jump to shares, ETFs, or property. But there’s a quieter corner of the financial world that deserves attention—non-marketable securities. In 2025, as regulatory changes reshape super funds and government-backed savings schemes, understanding these instruments is more valuable than ever.

What Are Non-Marketable Securities?

Non-marketable securities are financial assets that cannot be easily bought or sold on public exchanges. Unlike shares of Commonwealth Bank or BHP, you can’t trade these with other investors. Instead, they’re typically issued and redeemed directly with the government or a specific institution. Examples in Australia include:

• Australian Government Savings Bonds (ceased for new issuance, but still held by some investors)

• Commonwealth and State government loans to statutory authorities

• Superannuation fund investments in unlisted debt or private placements

These securities are often used to park funds securely, especially by institutional investors like superannuation funds, or as part of government savings initiatives.

Why Non-Marketable Securities Matter in 2025

The landscape around non-marketable securities has shifted in 2025 due to several factors:

• Regulatory reform: The Australian Prudential Regulation Authority (APRA) introduced tighter controls on liquidity reporting for super funds, highlighting the importance of easily valued (mark-to-market) assets. Non-marketable securities, with their illiquid nature, now require more rigorous disclosure in annual reports.

• Government savings initiatives: After the closure of the Australian Government Savings Bonds program in 2021, new policy pilots have focused on digital government-backed savings products, with similar non-marketable characteristics. These new products, launched in 2025, are designed to encourage long-term savings for first home buyers and retirees.

• Economic uncertainty: With global markets more volatile, non-marketable securities have gained renewed interest as a defensive component in diversified portfolios. Their direct relationship with the issuer (often the government) can offer stability even when listed markets swing wildly.

For instance, the new FutureSaver Bond, launched this year, allows eligible Australians to lock in a government-guaranteed rate for up to five years, but these bonds are non-transferable and can only be redeemed with the government—making them a textbook non-marketable security.

Pros and Cons: Should You Consider Non-Marketable Securities?

While non-marketable securities aren’t for everyone, they offer unique features:

Advantages:

  - Low or zero credit risk when issued by the government

  - Stable, predictable returns—great for risk-averse investors

  - Useful for long-term planning (e.g., super funds, education savings)

Drawbacks:

  - No secondary market, so your money is locked up until maturity or redemption

  - Returns can lag behind inflation or higher-yielding assets in bull markets

  - Often minimum investment thresholds apply (e.g., $5,000 or more)

In 2025, the government’s focus on boosting household savings through new non-marketable instruments has made them more accessible, especially for younger Australians looking for a safe place to park their cash while saving for a home deposit.

How Non-Marketable Securities Fit Into a Modern Portfolio

Most everyday Aussies won’t hold non-marketable securities directly, but you may have indirect exposure through your super fund or government savings programs. Here’s how they might fit:

• Super funds: Industry funds increasingly use non-marketable debt placements for stable returns, especially in their defensive or conservative options.

• Government schemes: The new FutureSaver and Home Deposit Bond schemes are open for direct investment, but with restrictions on access and transferability.

• Diversification: These instruments can help balance riskier assets in a portfolio, especially during periods of market volatility or when global equities are underperforming.

As always, the right mix depends on your goals, risk appetite, and time horizon. But in a world where uncertainty is the new normal, a slice of non-marketable stability can be a smart move.