InterAcct

@linzcom You need to read your tax law before making outlandish claims. Only the original loan ( taken out to fund the original purchase) can be expensed...

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

@Bigly20 They have been surprisingly quite about the changes bcus they realise how unpopular they are, changes are coming or Albo will never get his third term, what a tactical over reach.

‘Death tax’, startups and a rent spike: it’s time to correct misleading claims about Labor’s budget” theguardian.com/australia-news…

@just_brash @Jed_Hammer What a moron - you have stated they don't loose taxif the loose money by ow does that make It better

@Jed_Hammer If a company is losing money they pay no company tax. Also a company that consistently loses money is not a viable investment and would probably not earn a capital gain if it’s sold.

Why should business people and investors pay less tax than PAYG workers?

@just_brash Bcus they take risk, stick to you govt job clearly this is where the wealth is and you get to work from home - we are creating a two tired working class, tppp

@slothsforme Go and live in Cuba or Russia and leave the rest of us to enjoy this great country - taxing capital same as income is marcist - results in no productive capability and the same end as marxism

The 10% who are whinging about the changes to negative gearing & CGT should be ashamed of being so greedy & uncaring about Australia & its future. No longer screwing over other Aussies frightens them. We’re rivalling America with ME ME ME! #abc730 #auspol #NegativeGearing

@AshPolitik Yes business tax is capped but the owner will pay 47% marginal on income they withdrawal, and if they want to see I t will now be closer to that number than the existing 25% ex the small business exceptions

What's worse, they are failing to understand the effective tax rates not only on CGT, but taxable income or profits. There is NO instance where a business pays 47% in tax, due to the effective tax rates being reduced because of indexation, or offsets against income/revenue. Or its just straight out disinformation! Still one of the lowest in the OECD, in an economy above most.

No wonder majority of new business fail. If you run your business based on ideology and disinformation instead of rational pragmatic business acumen. If you fail to understand the tax system and available concessions. No wonder you're fucked.

@DrCameronMurray How can rents decline as investors withdrawal from the market, not to be replaced,,,,,,,,, did you not do 101 economics

My prediction? These guys will be very wrong. Sure, rents might rise 30% nominally over the next 5+ years, depending on incomes and inflation. But no sudden spike. And in fact, I expect a softer rental market over the next year or two.

@AshPolitik Do you undesratnd difference between observation and correlation...... This has happened globally and correlates to a global easing in interest rates.... Be intellectually honest please

In one chart the budget is validated

@lesstenny Exactly how are g hey helping younger people by a house, rents will increase excess ve tax on investments - please explain how that helps people save for a deposit. If it does bring down prices just watch how supply drops off in new builds ( cost more than they can sell for)

Oh ffs so many wealthy people are crying that they might have to pay some extra tax so Labor can help young people into the housing market.. Fucking cry me a freaking river.. Just get over it folks.. You'll survive, they won't if the ALP doesn't do something #auspol 😮

@clintac @AshPolitik Examples?

@AshPolitik Major OECD nations (such as the US, Canada, and various European countries) have CGT structures that can result in higher effective taxes than Australia when their state or local taxes are factored in

You'll never pay 47% tax on nominal capital gains. Top marginal rates pay effective rate of 27.3% on 5yr hold 30.1% on 10yr hold One of the lowest rates in the world. Other countries tax the whole gain, Australia doesnt. Facts matter over your ideological game.

@Ben_Davison1 Spoken like so one who has never risked their lively hood to embark on a start up 80% of which fail!

“Founders” thinking they “built the business without any help from government” are generally delusional narcissists Government provides -Educated & trained employees -The rule of law -Roads, rails, NBN, electricity, gas & water for your workers, products & services -Civil society

@DrCameronMurray @ForSureNotElon @tbuchanan90 Why would you invest in 6% risk return when you can get 5% on govt bonds,,,,,,,,,,,,,equity risk premium gone

@ForSureNotElon @tbuchanan90 ASX200 has only grown about 5-6% pa over the past 20 years. Yes, some years more. But many years less.

If you bought an investment home 10 years ago and sold it today, would you pay more or less capital gains tax under the changes in the budget? Say you bought an existing $1m home in 2016 that is now worth $1.67m (the typical national gain this decade). With the old 50% discount you pay ~23.5% of the nominal (if you start in the highest marginal income tax bracket), or $157k The new proposed indexation firstly increases the nominal base by 35% inflation, so your real gain is $320k and you pay 47% on that, or $150k So $7k less tax under the proposed new capital gains tax rules. I was surprised at the complexity of some of the proposed tax changes. But the net rate of tax doesn’t change much on average - just more tax on abnormally high capital gains, and less tax on abnormally low capital gains.

@DrCameronMurray @tbuchanan90 You are sooooooo wrong, inflation ex covid we won't see again

@tbuchanan90 If the capital gain over the next ten years is roughly the same in real terms as the last ten years, then they won't be taxed higher. That is what my example shows.

@DrCameronMurray So growth equities ( the productivity increasing companies) will no longer provide a risk adjusted investment return........ Doesn't take a genius to work out what will happen to asx

@DrCameronMurray What is reasonable about taking 30% of the money a parent left in trust to look after a disabled child when they have died?

The minimum tax rate on trusts proposed in the budget seems reasonable to me. What do others think?

@deemadigan Dee, what do you geniunly think will happen to supply if prices go below build value? Have you ever thought about secondary effects.........

Good. It means the budget policies are working. Housing should serve people, not speculation.

@RichardfromSyd1 @profholden @Barnaby_Joyce Because you need a risk premium to invest where the returns have now bee. Halved, so why invest in productive assets, might as well by govt bonds,- how does that help productivity?

@profholden @Barnaby_Joyce So what is different about interest paid on a deposit (taxed at marginal rates with no concession for inflation) to a capital gain ? Why are they treated differently ?

I can't believe I'm saying this, but @Barnaby_Joyce is right. "You buy assets out of after-tax income." That's why every advanced economy taxes capital gains at a lower rate than ordinary/labour income. And if we want to lower the burden on workers th en we should tax labour income less and consumption more. theaustralian.com.au/news/tanya-pli…

@GusLefty @profholden @Barnaby_Joyce Trusts? They have changed dramatically without grandfathering, if you change the rules it's a slippery slope

@profholden @Barnaby_Joyce sadly he deliberately, with malicious intent, never mentions the fact that investments have ben grandfathered and will not effect any current investor

@dontusexq1997 @profholden @Barnaby_Joyce Please share your data? Bcus you are sooooooo wrong

@profholden @Barnaby_Joyce Yes other countries tax capital gains lower than income. You know what else those countries have? Inheritance taxes. Estate taxes. Wealth taxes. Land value taxes. Comprehensive property holding taxes. Social Taxes etc...

@lolvenator @profholden @Barnaby_Joyce Name the countries that tax capital gain the same % as income? Every other country is sensible........capital is mobile

@profholden @Barnaby_Joyce Actually you buy assets mostly out of borrowed capital, especially if we're talking property. Also every 'advanced economy' I've lived in taxes CGT at your marginal rate, slightly unfairly I think given that the gain was likely accumulated over years rather than ll in one year.