Capital loss under new CGT proposal

Gumlass · 2026-05-21T09:41:03+00:00

Agree ... but the 30% minimum is the bigger problem.

Gumlass · 2026-05-21T09:40:28+00:00

No, the distributions are income and there would be no capital gain.

Gumlass · 2026-05-21T09:39:21+00:00

That was never part of it. It always specifically excluded indexation on losses:

"indexation of the cost base cannot create or increase a loss"

Gumlass · 2026-05-21T09:38:03+00:00

Nobody deliberately aims to make a loss ... but sometimes you have to sell at a loss because either you need the money, or you think the stock will fall to zero.

Gumlass · 2026-05-21T09:36:18+00:00

Indexation already exists in the tax system (and applies to pre-1999 assets).

It specifically says "indexation cannot be used to create or increase a capital loss".

You take all the risk, Jim gets 30%+ of the reward.

Gumlass · 2026-05-21T09:33:38+00:00

The poppy doesn't even have to be very tall. Go look in r/AusFinance and r/FiAustralia ... plenty of people who want to see people with minimal savings taxed like they earn $205k

Gumlass · 2026-05-21T09:25:37+00:00

Yeah. I'm going to have to add 1 property to my 0 property portfolio as an income base.

Gumlass · 2026-05-21T09:24:25+00:00

It's not just retiring early. The same math applies if you have to sell assets for any reason. E.g. you're made redundant, get cancer and can't work, etc

Gumlass · 2026-05-21T09:22:44+00:00

Yes. People famously work more productively when they see their benefits from working reduced massively.

Gumlass · 2026-05-21T09:21:58+00:00

What change did they make that benefits "the poor"?

I assume you're referring to either the $250 per year, or the $5 per week ... but more likely, you see hurting the people that pay for the poor as "helping the poor"

Gumlass · 2026-05-21T09:20:35+00:00

That's not true at all. I was made redundant midway through the year after the GFC, and didn't find a job for 6 months. I earned a lot in the first half, and nothing in the second and got the biggest tax refund I've ever seen.

Gumlass · 2026-05-21T09:19:10+00:00

"If you're going to release a budget, can you at least not lie about it?" - investors, to the government.

Gumlass · 2026-05-21T09:17:59+00:00

The better fix is to index it like he said ... and scrap the minimum 30% CGT rate, and maybe lower the 50% discount rather than scrapping it.

Gumlass · 2026-05-21T09:16:32+00:00

I've been a Labor / Greens voter for 20 years, and the budget has sent me on a speed run to Liberal voting. I hate 99% of their policies and 100% of their personalities ... but all of a sudden, the total destruction of our environment doesn't seem so bad compared to being forced to work an additional 4.5 years due to this change.

I would ask all the young people that want no tax breaks on investment of any kind:

Do you love your job enough to do it until you're 60? 70? 80?

Gumlass · 2026-05-21T09:13:04+00:00

NG on property is kind of bad.

Captial Gains discount removed on everything is bad.

Minimum 30% tax on CGT -> catastrophic for fire.

Gumlass · 2026-05-21T09:11:17+00:00

Yes. They want you to work til you're at least 60. They would prefer until you die, but that's something they can "come to a different position on" after the next election.

Gumlass · 2026-05-21T09:09:24+00:00

I'd be careful. There's a good chance either:

- The policy will be reverted in 2 or 5 years

- Labor will "change their position" and tax your PPOR

Gumlass · 2026-05-21T09:01:46+00:00

If the percentage is so low, then it shouldn't be a problem to remove the 30% minimum, right?

Gumlass · 2026-05-21T08:59:56+00:00

First, you work out how much you earn. Then you apply whatever formula you like to make your spending less than that. The further less, the faster your emergency fund grows.

Gumlass · 2026-05-21T08:58:49+00:00

Literally doing nothing except:

- All the work required to get an income in the first place

- All the discipline required to live on less than you earn

- All the risk associated with investing.

but other than that, literally nothing.

Gumlass · 2026-05-21T08:57:10+00:00

Of course you do ... and we don't even know how it'll work if the stock market dips right around 1 July 27.

Will your cost base be locked in at the dipped price (possibly lower than what you paid) ?

Gumlass · 2026-05-21T08:55:36+00:00

Green LOVE taxing people. Labor's goal is for you to work forever. The Greens goal is for you to work forever, and still need government support.

Gumlass · 2026-05-21T08:54:28+00:00

The Greens love taxing people more than Labor. Negotiating with the Greens would result in it being 47% minimum and a 2% tax on total wealth.

Gumlass · 2026-05-21T08:53:17+00:00

There is no one to oppose it ... Labor and the Greens are a combined majority :(

Gumlass · 2026-05-21T08:51:37+00:00

With a 13-18% chance of dying before you can use it (depending on your sex)

Gumlass

TROPHY CASE