KGS

@___Cashy It’s going to make it a lot harder for younger people to afford to buy a home or to save for a deposit

We’ve had people reach out saying they may never have been able to afford the family home they eventually bought if these rules had existed when they started investing, because of the much bigger tax bill on the ETFs and shares they sold for a deposit.

@markgardn Yes. People who have straight from uni to political party/union and have never worked in business with the challenges it has, including cost pressures should not be running the government

Good. I am not necessarily a fan of thier policy, but career politicians are ruining the world and Australia You shouldnt be allowed to run without 5 years in the private sector

@TheKouk Are you ok? Seriously?

Opposition leader Angus Taylor is promising, if elected, to index income tax scales to the inflation rate. This is not a good idea. For example, if inflation was 2.5%, the level at which a worker moves from a tax rate of 30% to 37% is lifted from $135,001 to $138,376. They are automatic income tax cuts in line with inflation. If inflation is 5%, as it is not, that tax scale would rise from $135,001 to $141,751. A huge rise and a huge tax cut at a time when inflation is ripping along. The problem with such a scheme is clearly that it is pro-cyclical. In an era of high inflation and an overheating economy, the rise in the tax scales will be big which gives large income tax cuts to the workforce. This would see the policy working against the RBA's anti-inflationary stance in this example. Interest rates would be even higher as a result. The proposal would make it much harder for the RBA to meets its inflation target and / or will require much greater volatility in interest rates as the RBA fights to offset the pro-cyclical nature of the the indexation of tax scales. And it costs a fortune - a chunky $23 billion in 4 years. youtube.com/watch?v=PaSZG2…

@cjoye Exactly. This @AustralianLabor budget whacks younger voters more and will make it much more difficult for them to save a deposit for their first home. @AlboMP is counting on the TikTok generation not paying attention or just listening to paid influencers

There are two other dire consequences of this budget that nobody is talking about. The first is that the budget’s introduction of an effective capital gains tax of up to 45 per cent - 47 per cent – previously capped at 23.5 per cent for assets held more than 12 months – hits younger savers hardest, precisely because they have the highest portfolio exposures to high-growth assets such as listed global equities, Australian shares, crypto, venture capital and private equity. When anyone builds a portfolio for younger investors, they rationally load them up with the highest-growth and most volatile assets on the basis that a long investment horizon allows them to weather the inevitable volatility storms. As investors age, these portfolios shift into more stable and income-rich asset classes such as cash and bonds, which are net beneficiaries of the CGT increase, because their post-tax returns now look more attractive relative to growth assets. As many investors have noted online, why would you allocate to a bunch of high-risk growth companies when Albanese and Chalmers are going to take almost half the upside while wearing none of the downside? Rather than helping younger generations, the highest CGT rate in the developed world will hammer them. And it is a double whammy because the many early-stage companies that have historically employed 20- and 30-somethings will now consider moving overseas. Their investors will simply not want to trade away half of their upside to the public oligarchs. If you allocated $10,000 to bitcoin after the March 2020 pandemic shock – which many young punters did, and which would now be worth approximately $92,000 – the new CGT regime imposes vastly higher amounts of tax. A self-funded retiree on the tax-free threshold would go from paying nothing to almost $24,000. Somebody earning between $18,000 and $45,000 a year would see their tax bill jump from $7400 to $23,900 – a 222 per cent increase. Those in the $45,000 to $190,000-plus tax brackets would have their bill rise by 93 per cent. Since the new CGT regime is, by definition, much more costly on higher-growth investments, it will punish younger investors who have much greater risk appetites and lower average incomes. afr.com/markets/equity…

@RBASHAGGER Don’t forget his Medicare levy - he gets that too… don’t try and short change him

45% equity partner Jim Chalmers when you sell your startup for 100X

@JP__75 @AlboMP We wanted to drive investment towards productive assets which is why we decided to massively hike taxes on productive assets…. If you ever needed more proof@AlboMP and @JEChalmers have no idea what they’re doing

Have a listen to this absolute word salad from @AlboMP 🤣 Wtf is he even talking about? And listen carefully to the underlying message… you no longer work to build wealth, get ahead or create a better life for your family. You work so the government can decide how much of your success you’re allowed to keep. History lesson: socialism always sounds compassionate right up until the economy falls apart. #auspol

@RBASHAGGER He should just rule it out no matter what he wants to do. Then when he goes against his word he can just say he changed his position… and that’s all good then apparently

This has got to stop!

@TheAusInstitute @GrogsGamut It’s a bad idea if you want to collect more tax from individuals.and once a decade it allows some PM to claim they’re a hero of the people by moving tax brackets the equivalent of a year or 2 CPI. If you love high taxes like The Australia Institute then you wouldn’t like it

In his budget reply speech Angus Taylor revealed his plan to index tax thresholds to inflation. Which might sound good at first, but there are some pretty big reasons why it's a bad idea. 📺 Chief Economist Greg Jericho explains. @GrogsGamut #auspol

@SwingRequired @DavidBassanese And @AlboMP doing an interview and saying that they decided to increase CGT on shares and businesses because they wanted to encourage investors to direct capital towards productive assets has provided certainty that he has absolutely no idea what he is doing. None.

@SwingRequired @DavidBassanese People now have choice where they start their business, or where they restructure to move the business to once they’re certain it’s going to work. You may not like that, but it’s the truth and they can and they will. This is a massive own goal for this country.

To my mind the worst part of the Budget was the effective doubling in the “entrepreneur tax” when selling a business from 25% to a world record 47%. Either Treasury did not know or care - which is worse ?

@SwingRequired @DavidBassanese The world was a very different place between 1985 and 1999. Far less mobile, much harder to move and start a business elsewhere. Dubai was still just sand, Singapore a shadow of what it is…. You can’t compare people’s options between then and now for starting a business

@DavidBassanese Just a slight correction, David. It was the effective doubling of a half tax rate to a tax rate everyone working pays. And there was no 50% discount for 15 years and the sky didn't fall in.

@matthew_inaus @DavidBassanese @MayneReport Indexing adjusts cost base which, if you get the shares at no cost when you start the business, is still nothing after 20 years of indexing….

@DavidBassanese @MayneReport 23.5% to 47%, but only if you sell a business in less the 12 months. Most people will pay far less.

@BikoKonstantin1 The ET is pretty good. Like it

The 2026 Budget has totally changed the landscape for Australian Property Investors - and could lead to the biggest housing market crash in Australia's history.

@r3tarddownunder @AlboMP She let him off very lightly. If @AlboMP wanted to direct resources to productive assets then why the massive tax increase on people directing resources towards productive assets. Make unproductive, less risky assets as appealing as productive assets where will money flow?

After ALREADY being taxed 30-50% of your income, this retard @AlboMP literally believes that that the government is entitled to tax you on your risk (investment) if sold for profit.

@ausstockchick They’re not. It’s a shocking budget for the young - they were the one who took the greatest whack from this. @JEChalmers probably just assumes (probably correctly) that none of them are paying attention and won’t realise until all too late

I am yet to meet anyone who is actually impressed by the budget. Every single person I’ve spoken to has said it is the worst budget in history. Tell me exactly how any young person is going to create wealth in Australia now? Nobody can answer that question. #auspol

@Bedeapk @AustralianLabor They have made it insanely complex - it’s going to be a nightmare and add so much administrative time to people’s already busy lives… an absolute shocker

@Bedeapk Mainly they are an asset protection scheme for your family. Also protect against an inheritance tax when brought in. There is a reason @AustralianLabor are attacking them and giving people incentives to move assets out - inside an inheritance tax can’t touch it, but once out…

Trusts aren’t businesses - they are tax minimisation schemes and always have been.

@fulovitboss @AlboMP @AngusTaylorMP @PaulineHansonOz @OneNationAus “We wanted to encourage investment in productive assets which is why we changed the tax to make productive assets and risk less attractive than unproductive assets”

Have a listen to this dribble and see if you can make sense of Albo’s answer… The question: “Why were the capital gains tax changes applied to all assets rather than just residential property”

@Goalkickingguru New CGT rules will also reduce the size of their deposit by the government even more in tax through massive increase in tax. Most young people saving for deposit have invested in financial assets - they don’t have it sitting in cash doing nothing. Now harder to save.

If they want to buy a home it’s logical that they are now renting. They’d need a $70000(10%) deposit on a $700000 home. Budget estimates say your new capital gains/negative gearing tax will increase rents by $110 a week. How will people save a deposit

@pauliec80859931 @AlboMP @ALeighMP @AustralianLabor Trusts provided good asset protection against any inheritance taxes that would be introduced. It is not a coincidence that trusts have been targeted heavily, or that the budget then provided incentives for people to move assets out of trust now, making them vulnerable.

@pauliec80859931 @AlboMP has previously spoken about desire for an inheritance tax as has @ALeighMP - it’s also one of the key pillars of reform espoused by the @AustralianLabor aligned think tank The Australia Institute. It’s coming, and soon.

Albo has ruled out an inheritance tax & tax on the family home. Pencil it in. It’s happening.