23fm
1.1K posts
Where's my smoothing of CGT?
Shane Oliver@ShaneOliverAMP
This occurs because taxpayer 2 has all their earnings in just one year & so incurs far more tax. Keating model (from 1985-99) allowed smoothing of cap gains across tax yrs to minimise this distortion. If not it’ll be a huge disincentive. Its not an issue with the 50% disc model.
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@linzcom @AvidCommentator But that is not grandfathering. You can do that with any property bought after budget. For example, I can buy an existing residential property on 1 July 2027 and then borrow against it to buy shares. And the interest is fully deductible.
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@AvidCommentator And grandfathered owners can still borrow against the property to completely renovate the dwelling and benefit from NG.
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Deleted my previous tweet with a question on the implications of negative gearing grandfathering until I can get more info on some of the claims being made.
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@23fm6 For existing dwellings that looks to be the case. But not for other asset classes
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This is big. As far as I understand, those who own a property grandfathered under the changed to Negative Gearing will continue to be able to re-leverage against that grandfathered property to buy more assets and write off interest costs against income well into the future
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@HarryFromSyd @SwingRequired Or net assets less than $6m.
And sales of retail fuel excluded from turnover.
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@SwingRequired "has an aggregated turnover of less than $2 million"
So not a builder who does 2 renos a year in Syd
Or any moderately successful restaurant
Or a Maccas franchise store owner
Or a petrol station
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Just a fact check on this spurious 'Albo is a 47% partner' for CGT on businesses sold.
There is still a 50% discount on sale under the 'active asset' test which a business will be eligible for.
So it's 23.5% tax, not 47%, poor millionaires.
#cgt
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@Tradermayne He’s not evading tax as there was no tax anyway if he sold in Australia. Jerz later revealed important fact that crypto holder was a temporary resident, not an Aussie citizen, and wouldn’t have paid any CGT. He didn’t need to move overseas.
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@cameron_muncey @MildCuthbert Too old? If only they were younger. Seventeen oh, oh.
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Been at my parents' house this week. It's an ABC household and they've been bombarded with this ISIS brides story for 48 hours straight. Worthless institution.
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@taipan168 Income Tax Rates Act 1986 (Cth) sch 7 cl 2, which prescribes the averaging mechanism applicable where a taxpayer’s taxable income includes a “special income component” says it is correct.
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@taipan168 But only on the portion above $190k, which is only a very small part of the gain. Average tax rate on $200k income is 28%, which is the rate the whole gain would be taxed at.
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The CGT change as has been floated would be disastrous for the start-up community in Australia, because employee share/option schemes would automatically be taxed at 50% since the indexation would be on a zero cost base.
I just hope Chalmers is listening.
afr.com/technology/cat…
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@GeoffWilsonWAM @mrr78504 If you are talking about a business, then small business CGT concessions could currently, and probably could still under the changes, reduce the tax to zero.
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@mrr78504 You need to put some risk capital into operating businesses. That’s what this proposal will destroy.
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Theft from aspirational Australians will be delivered in the budget next week. Young Aussie puts in $10k, compounds at 15% for 50 years → $10.84 million.
Inflation-indexed cost base: just $44k. Current CGT: $2.63M tax.
Labor’s new proposal: $5.23M tax.
They want to seize HALF your life’s work.
This isn’t tax reform — it’s theft from aspirational Australia.
Stop punishing success. #TaxRaid #AussieDreamKiller
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@RonniSalt •"It is a period of civil war. Rebel spaceships, striking from a hidden base, have won their first victory against the evil Galactic Empire."
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Apparently Seinfeld went 6 hours north of NYC to the middle of nowhere to the town I was raised in to realize he was a fag for black guys. What the fuck.
Yeah Seinfeld has lived with either black gay guy George Wallace or black gay guy Mario Joyner for most of his adult life.
And there’s definitely something wrong with that….
I just don’t like that he first went queer in my town. So embarrassing
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@tennisabstract There’s a strange magic to these rankings.
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Friendly reminder -
ELO is a band.
Elo is a performance-rating algorithm.
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utterly unhinged that Tucker Carlson ended up doing more truthful, empathetic journalism than anyone on Australian television. Truly cooked
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