chid8ms

@ryu_tay Existing businesses should be encouraged to allocate capital for improving productivity and capacity. Why would anyone do this if their gains are taxed at 47 percent or more? They will just distribute it.

As I pointed out... "The change will theoretically make it less attractive to invest in pre-revenue assets with growth potential and safer to invest in existing businesses with reliable dividend streams." afr.com/markets/equity…

@scottythegoat @cjoye Sock the rich? Rubbish. A student who makes $30k CG today pays zero tax. After July 1st 2027 it’s $9,000. Someone on $70k today making a CG of $30k pays $4.5k changing to $9k. Massive blow to lower income ppl.

Lying by omission: The 30% minimum tax did not apply previously Treasurer cannot details how it will apply for testamentory trusts. Complexities in grandfathering. Highest Capital Gains Taxes among all the nations which Australia competes with for capital and entrepreneurs.

Is it a good time to remind everyone that in America, the top federal tax rate (37%) kicks in at $636k of income ($875k AUD) for singles or $751k ($1.05m AUD) for married filing jointly?

You missed one placard, it says "EPIC FAIL". Tell me, how is taxing the investments of the young at a minimum of 30% going to help them get a home? Or how is allowing any one with the money to both build or compete with the young on new builds? Or how are they meant to save money if they have no jobs? You have done NOTHING specifically to assist 1st home buyers. Its a bit like trying to fix a dripping tap (1st home buyers) by replacing all the plumbing at great expense, then reusing the same dripping tap. Just focus on the tap and fix that, leave everything else well alone. The sheer mess, confusion and anger the legislation is causing should alert you that in needs a fundamental rethink. Otherwise, come the next election, everyone is going to do the rethink for you... Wise up!

Lucky no young people put money into etfs to save for houses while still living at home…….. oh wait. Shit.

The new CGT regime is fundamentally broken and unworkable. It literally punishes risk taking. @JEChalmers How exactly is this going to help the ~40% of young investors who are invested in shares to get ahead? This, combined with the minimal 30% CGT on any capital gain (regardless of your income situation) is going to RUIN them.

Australians are struggling and they deserve real tax relief. End bracket creep, introduce income splitting, cut taxes on housing and insurance.

Here is my advice for avoiding 47% CGT on shares. Step 1 - Take all your money, put it in the bank, and collect 5% interest. Step 2 - Get a doctor to diagnose you as autistic, and register for the NDIS. Step 3 - Buy a PlayStation 5, sit on the couch, and punch cones.

@ryu_tay If these changes go through, best is to sell all stonks and dump it to index funds. Never sell. This is the governments way of pushing us to mediocrity.

How would the proposed CGT changes work in practice for highly volatile shares where prices can swing dramatically around the transition date? For example, if a stock falls 50% just before 1 July, rebounds 20% shortly after, and then later drops another 50%, how would the cost base and taxable gain be determined fairly? It seems like this government seems to treat the whole share market as if just ASX 200 index rather than individual stock pickings. It's going to be a nightmare to just think about working out all these cost bases.

Hey Albanese - I don't know whether to laugh or cry!

Albo and Chalmers have made a real mess of this budget. He and his government ministers are clueless.

@cjoye @matt_barrie Heads we win tails you lose. Trouble is Australia going to lose long term 🤷‍♂️

@craigspeculator @cjoye I don’t have a house, all my money is in shares. This policy is terrible for me.

So a loss created by indexation is ignored. In my example below (sorry it’s so rough) the taxpayer has made an overall inflation adjusted loss. But they’ll be taxed on only the gain with the loss disregarded. And the gain will be taxed at a minimum rate of 30% (so $15k tax despite a real loss). It’s an awesome system.

@ryu_tay @Stockrocker_ASX lol

@Stockrocker_ASX Well you need to change accountant then

I just met my accountant and she said the 50% CGT discount still apply to shares Is this true?

If capital gains are going to be taxed at marginal rates, then capital losses should reduce income at marginal rates too. You shouldn’t have the government act like a silent partner on the upside, then disappear when the investor takes the downside risk. That is not reform. That is asymmetric taxation. Gains are treated like income, but losses are locked in a separate capital loss bucket. If the government wants a bigger share of the reward it should also share the risk.

And for good measure, AFR has just posted a second article. Can i ask you all to distrubute this article far and wide. afr.com/politics/feder…

If income tax wasn’t being increased by stealth (if it was indexed), it’d cost the federal budget about $9bn per year. Or in other words, almost 15 million workers would get to keep an extra $9bn per year of the wages they earned. To put this into context: • NDIS will cost over $55bn per year for less than 1m participants, with much of it being defrauded • Lost revenue from illegal tobacco is about $10bn per year because we taxed it into the black market • Interest repayments on government debt will cost over $26bn per year with no plan to pay it off Misplaced priorities, well-intended failures, utter incompetence - call it whatever you like. Regular people are hurting - and those who support these settings are complicit in this betrayal.

Treasurer, we are onto you. You LIED to us on the CGT. The rate is 50% higher. See below response from Matt Finish. x.com/Matt_Finish__/…