Personal Property in Australia 2025: Key Insights and Financial Strategies

As Australians continue to build wealth and navigate a rapidly evolving financial landscape in 2025, understanding the nuances of personal property has never been more crucial. From regulatory changes to rising insurance costs and new digital asset classes, the way we own, insure, and protect personal property is changing—fast.

What Is Personal Property and Why Does It Matter?

Personal property includes anything you own that isn’t land or real estate. Think cars, jewellery, electronics, furniture, and increasingly, digital assets like cryptocurrency wallets and NFTs. For most Australians, personal property makes up a significant chunk of net worth, especially for renters or younger families yet to enter the property market.

• Tangible assets: Cars, boats, home contents, artwork
• Intangible assets: Bank accounts, shares, digital currencies, intellectual property

The value and risk profile of your personal property directly affects your insurance needs, borrowing power, and estate planning. In 2025, as the Australian government tightens regulations around asset reporting and digital ownership, getting clear on what you own is more important than ever.

2025 Policy Updates: Insurance, Tax, and Digital Assets

This year has brought several notable changes:

• Insurance Premiums: According to recent ASIC data, average contents insurance premiums have risen by 7% compared to 2024, reflecting increased claims from climate-related events and higher asset values.
• Asset Reporting: The ATO now requires more detailed reporting of digital assets and high-value collectibles, with new thresholds for capital gains tax (CGT) events. This includes NFTs and cryptocurrencies, which must be valued and declared annually.
• Consumer Law Reform: 2025’s amendments to the Australian Consumer Law further strengthen protections for buyers of second-hand personal property, particularly vehicles and electronics, requiring clearer disclosure of history and warranties.

For example, if you sell a high-value watch or a rare NFT in 2025, you’ll need to report the transaction and may face a CGT event—even if the sale occurs through an online marketplace. Similarly, insurers are scrutinising claims more closely, especially for items without proof of purchase or valuation certificates.

Strategies for Protecting Your Personal Property

Whether you’re a homeowner, renter, or investor, safeguarding your personal property is vital. Here’s how Australians are getting proactive in 2025:

• Inventory and Valuation: Use digital tools or apps to inventory possessions, keep receipts, and regularly update valuations—especially for items like jewellery, artwork, and digital assets.
• Insurance Review: Check your contents and valuables insurance for adequate coverage, including accidental damage, portable items, and cyber theft (for digital assets).
• Asset Segregation: Consider separating high-risk or high-value items into standalone insurance policies or legal structures, such as family trusts, to manage risk and succession planning.
• Digital Security: With more Australians owning cryptocurrencies and NFTs, robust digital security is non-negotiable. Use hardware wallets, two-factor authentication, and keep private keys offline.
• Estate Planning: Update your will and enduring power of attorney to specify the transfer of both tangible and digital personal property, ensuring your assets go where you intend.

For instance, after the 2024 summer storms in Queensland, many renters found their basic contents cover inadequate for replacing electronics and designer clothing. Meanwhile, a surge in NFT scams led several Australians to lose assets that weren’t insured or properly documented.

The Future of Personal Property Ownership

Looking ahead, personal property is becoming increasingly digital and mobile. Australians are investing in virtual goods, smart devices, and experiences, while traditional assets like cars and home contents remain essential. The lines between personal and business property are also blurring, as more people run side hustles from home, making accurate asset categorisation and reporting critical.

Key trends to watch in 2025:

• Micro-insurance: On-demand, item-specific policies for everything from e-bikes to VR headsets
• Blockchain Provenance: More Australians using blockchain to prove ownership of luxury goods and collectibles
• Government Audits: Increased ATO scrutiny of undeclared digital assets and luxury items

Staying informed and proactive is the best way to protect your wealth and avoid nasty surprises during tax time, insurance claims, or family transitions.