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The Ridiculous Spending Hidden in the Federal Budget What is your favourite thing about the budget? Watch our latest video:

Young people still believing Albo is helping need to watch this.

@ClareONeilMP A very unconvincing performance on Insiders this morning - your fidgety body language makes it clear that you don't believe in your own party's policy - clearly you're implementing a broad-based tax grab.

Australia should be a country where hard work, not what you inherit, gets you ahead in life.

@Wonderwailer @croninpd Schooled by grok 👇

@croninpd Why is my labour taxed at a higher rate than your capital gains?

When did not taxing something become a subsidy? …….The Australian government has a misaligned view of what its role is.

We can’t tax and subsidise our way to productivity, but a radical tax and spending overhaul could build the world-class economy we deserve. ebx.sh/mW796S

What current generations forget is that Australia had *zero* Capital Gains Tax from its founding through to September 1985 - the first-ever CGT was introduced by Labor under Hawke/Keating… New Zealand still has zero CGT. Socialists are trying to tax the private sector to transfer this income to the public sector to fund its out-of-control growth

Higher taxes on capital gains, trusts and curtailing negative gearing, combined with a $250 tax offset for working Australians, would leave 90 per cent of people aged under 30 financially better off, Treasury secretary Jenny Wilkinson said. ebx.sh/SVGIFZ

@TMFScottP @Matthew81334996 Replacing the 50% CGT discount with CPI indexation + 30% min tax, Aussie investors will increasingly target high-yield stocks paying fully franked dividends. Growth assets lose their edge. Franking credits + reliable income win. Classic tax-driven rotation incoming on the ASX.

@Matthew81334996 I don't think anyone 'targets' a lower return, fwiw :) But I hear your general point. I don't think it's a reason to object to indexation, though.

I can only imagine how many noses this has put out of joint on CGT changes. But... he's right. True, many people genuinely fear for the potential impact on innovation. But many from ideology and self-interest. I would change some of the policy, but indexation is fair.

@ArrowInvestor Your logic is sound despite what some of the naysayers (government leaches) say.

A simple 2 stock example to show how Labor Gov new Capital Gains Tax tax will screw Everyone! Both the top and bottom end of town. 45-70% tax.

@colonelhogans Perhaps for the lazy ones with no aspirations of financial independence. Let's encourage young people to leach off the system from day one.

Modelling shows 90% of young Australians will be better off under Labor’s tax reforms The $1,000 tax deduction, $250 ‘working Australians tax offset’, and CGT and negative gearing changes will most benefit young people, Treasury secretary says Guardian

@TheKouk 🐂 💩

Australia's Capex boom! The foundations are being laid for a productivity surge. Great news on private sector CAPEX: up 6.5% in the March qtr; 14.6% yy - the strongest rise since 2012. Capex is the essential ingredient for a lift in productivity. Jobs being done more efficiently with machinery & equipment & quality buildings & structures. CAPEX had been in a severe slump for a decade which is one of the reasons for the recent dismal record on productivity. To see productivity rise as it is now is hugely encouraging. The ABS also released household spending - down a chunky 1.1% in April after a 1.6% lift in March with swings in petrol sales driving this result. youtube.com/watch?v=oVwbOG…

@JEChalmers Cunning Jim. More tax cuts in absolute terms, sure - but with bracket creep, higher rents from negative gearing changes, and overall tax take still rising, many will see significantly less in take-home pay.

BREAKING: We've just introduced legislation to deliver more tax cuts to Australian workers. Labor's five different tax cuts will benefit the average worker by up to $2816. This Budget makes the tax system fairer for workers, businesses and first homebuyers.

@AlboMP 🐂 💩

We can't sit back and let the dream of home ownership become a thing of the past.

@TheAusInstitute @PaulBarclay Polly's big delusion. Australia's gas industry is a major economic driver as one of the world's top exporters. It contributes over $85 billion directly to GDP and over $100 billion total including flow-ons, with LNG exports alone worth over $90 billion annually in peak years.

"Fossil fuels are killing people. You'd think that would be enough of a reason for someone to stand up and say, we're going to stop approving new coal mines." Polly Hemming on our new What's the Big Idea? podcast with @PaulBarclay. #auspol

Every Australian who owns shares, runs a business, invests for retirement or hopes to build wealth should be paying attention. It’s about the future of investment, productivity and aspiration in Australia. Sign the petition.👇 #CGT #auspol wilsonassetmanagement.com.au/capitalgainsta…

@TheKouk Let's keep it simple - this budget is theft under the guise of rebalancing the housing market

Most of those ferociously complaining about the budget have never worked in public policy, never had to consider balancing the huge issues in a $800 billion a year budget, never implemented reforms that impact all 28 million Australians, never copped the public hate campaigns against them & their families. We are seeing the lid being lifted on the priorities of those people.

Small Cap Investing is Dead with a 77% spike in Tax Collection I have run 1,000 Monte Carlo simulations of portfolios of 20 Small Cap Stocks with the New Inflation Corrected CGT model versus the existing 50% CGT discount model. The results are devastating. The bottom line is that small caps are highly asymmetric bets where your small number of winners are meant to compensate you for your many losers. Mining companies are a good example of this situation and are a fundamental pillar of our national wealth. However if you tax those few winners at 47% with the trivial relative inflation correction you effectively wipe out the ability to offset your losses. This is because the tax drag on your few multi baggers is so high that it changes the entire logic of the investment process. It's become a loser's game. 1. ​The Moonshot Tax Penalty: Because Australian small caps rely heavily on a right-skewed distribution (a few massive winners offsetting many losers), the Indexation framework introduces a devastating tax penalty. For a stock that goes from $50,000 to $400,000, a 3% inflation adjustment on the original $50,000 cost basis is completely negligible. Under Indexation, you forfeit the 50% discount and pay a flat 47% on nearly the entire gain. 2. ​The Turnover Trap: With a 15% annual turnover, small-cap portfolios realize taxes continuously. Under the current system, every partial sale triggers a flat 23.5% effective tax rate, leaving more money inside the portfolio to compound. Under indexation, those early wins are hit at a full 47% clip, severely dampening the portfolio's forward compounding engine. 3. The Asymmetric Loss Failure: in small-cap investing, a stock can only ever lose 100% of its value, but explosive winners have unlimited compounding upside. The government’s asymmetric tax system completely devastates this dynamic: by replacing the flat 50% CGT discount with inflation-indexing for winners only, it leaves your nominal losses capped and completely unable to counteract the massive tax hike on your multi-baggers. Because a 3% inflation buffer barely dents a 400% moonshot gain, you end up paying a brutal, un-discounted 47% tax rate on the very winners that drive a small-cap portfolio's success, causing a 77% spike in total government tax take overall. Even in investing we see the socialist government wants us all to be the same. Communists. (Technical notes: Model executed using Gemini Pro with 1,000 portfolios of 20 stocks each with the volatility and median return typical of this class of small cap stocks over the last 10 years, using a geometric mean process to step forward each portfolio each year).

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.

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…

NSW Premier Chris Minns said income-earners paying the highest marginal tax rate of 47 per cent were effectively working half the week for the federal government. ebx.sh/KQnqK3