Geoff F66

This new @AlboMP & @JEChalmers insane #CGT is covered by @LivewireMarkets article on CGT 'The Labor tax "top-up" rule every investor should know': The worked examples illustrate one of the biggest criticisms of Labor's reforms: that the minimum tax gap amount is more likely to affect investors on lower taxable incomes than those already paying higher marginal tax rates. @WilsonAssetMgmt founder @GeoffWilson has been one of the most vocal critics of the changes, arguing the minimum tax provisions miss their intended target. This floor doesn't touch the wealthy. Anyone already paying 37 or 47 cents in the dollar never feels it. It lands on the part-time workers, the young investors and the self-funded retirees who did everything right and it strips away the one legitimate tool they had, putting the proceeds into their super, to avoid being taxed at 30% on a modest, once-in-a-lifetime gain. That's the opposite of what this government says it's trying to do. Every week we seem to discover another provision that wasn't part of the public debate. Australians deserve to know the full consequences of changes this significant before they become law, not months after the legislation has been introduced." livewiremarkets.com/wires/the-labo…

Albanese is the first Australian Prime Minister in half a century to preside over GDP per capita stagnation

As predicted, growth stocks are out of favour due to CGT changes as investors rebalance towards low risk dividend paying stocks. The last thing Australia needs given low growth and declining standards of living.

@JEChalmers Company registrations will be in response to Budget Trust measures. It’s not a sign of a growing economy.

NEWS: More new businesses were created in June, after the Budget, than in any other month on record. New numbers out this week show more new businesses were registered last month than in any other month since these records first began in 1999. More businesses were created in the month after the Budget than in any other month on record. There’ve been 30 times the businesses starting up than closing down each day on average under Labor, and insolvency rates are almost half what they were under the Howard Government.

It's not your money @AlboMP. It belongs to Australian's saving for their retirement. And it should be managed with that sole purpose in mind. Not as a slush fund for your political objectives.

The Government @AlboMP & @JEChalmers needs to wake up. Please retweet. Not a single finance academic at a recent academic business conference supports the #CGT changes. EVERYONE there hates them. Wake up Australia

@TheKouk And all the budget polling showed the budget ewas badly received.

@TheKouk Correlation is not causation. Data would be picking up the end of the war is Iran. Budget does nothing to arrest our declining living standards.

Facts. Since the budget, there has been a solid pick up in confidence in the Australian economy. Consumer confidence is up 17% (Roy Morgan - ANZ measure) while business confidence is up 9 points. Of course, both measures are still pessimistic; but the turning point is welcome news. Suffice to say, the bleating of a few about how the budget measures will ruin the economy are hot air & not reflected in the way Australians see the economy. youtube.com/watch?v=UC2ZUb…

@chrisbrycki It is inevitable that a future government will change the CGT regime. The maths is undeniable for diversified investment, even if the current government is burying its head in the sand. The only question is when?

Here’s one way many investors could avoid the new CGT entirely… don’t sell. If the changes prove as economically damaging as many expect, there’s a good chance a future government reverses them… and if enough investors don’t sell their investments, the new CGT may raise far less revenue than forecast, making repeal even more likely. In this video I explain why the best strategy may simply be to HOLD.

@DerekFranc90653 No one will. I was just at an academic business conference. Everyone HATEs the changes. There's not a single finance academic who supports them that I'm aware of.

@DavidBassanese All entirely predictable. In fact I predicted it along with many others.

So investors are now seeking low tax dividend investments over higher growth opportunities. What a crazy outcome of the CGT changes. afr.com/markets/equity…

@David_McMahon75 It’s disturbing that political actors are designing bots not to explain or sensibly debate policy but to deliberately spread misinformation.

Here’s a window into the standard tactics of the Labor reply-bots. First the insults and denial of reality. Then, when confronted with facts, more drive-by insults and they block you and run away.

The distortions from the CGT changes are pushing investors into low growth high income stocks. The last thing Australia needs given flatlining productivity.

@johnno196 Under the new rules you get taxed on the full $5k if you sell in under a year. And the old system also allowed you to sell in different financial years.

@F66Geoff At the moment, under current rules, using your example, you get taxed on the full $5k (if held for less than a year) Under the new system, if you are holding for more than a year, you can still manage your tax by selling in different financial years.

Why the CGT system overtaxes. Two $50k investments. One up by $5k, the other unchanged. Inflation is 2.5 percent. The overall gain on $100k invested is $5k or $2.5k after inflation. But you can only index the stock that has gone up. So you pay tax on $3.75k gain not $2.5k.

No other country in the world taxes CGT at marginal rates using inflation indexing, where inlation based losses can’t be offset. It results in marginal rates being the minimum not maximum rate of tax being imposed.

@TheKouk So if the tax changes are going to fix the housing problem, why stop there. Why not ban housing investment altogether? House prices can only have risen by the capitalised amount of the concessions and the concessions simply aren’t that large.

I am hearing lots of this sort of story - great for home ownerhsp and the property they were renting is now vacant. Win-win (except for investors)