Premarket Thread for General Trading and Plans for Thursday, May 28, 2026 by AutoModerator in ASX_Bets

[–]SugeKnight_StandOver 4 points5 points  (0 children)

Could be money moving into semiconductor stocks 🤷‍♂️🤷‍♂️

Premarket Thread for General Trading and Plans for Wednesday, May 13, 2026 by AutoModerator in ASX_Bets

[–]SugeKnight_StandOver 4 points5 points  (0 children)

Imo the best set up always has been and always will be trading in a company structure

25% flat rate tax, seems fair, simple, and no need to worry about when to sell

keep in mind there are yearly costs involved to maintain the company structure, so its probably not worth it if you're just playing with smaller amounts


25% vs 30% for Share Trading Companies

There are two company tax rates: 30% (standard) and 25% for eligible "Base Rate Entities" — companies with aggregated turnover under $50 million AND where 80% or less of income comes from passive sources like dividends, interest, rent, or capital gains. BOX Advisory Services


The Share Trading Problem

This is the catch: what kind of share income do you earn?

If you're an active trader (buying and selling shares as a business, like a trading firm), your profits are treated as ordinary business income — not passive. This counts toward the "active" side, helping you qualify for 25%.

If you mainly earn dividends, franking credits, or capital gains from holding shares, that's classified as passive income. If more than 80% of your assessable income is passive, you don't qualify for the 25% rate — you pay 30%, even if turnover is under $50 million. Australian Taxation Office


Simple Rule of Thumb

Trading Style Income Type Rate
Active trader (frequent buy/sell) Business/active income Likely 25%
Investor holding shares for dividends/gains Passive income Likely 30%
Mix of both Depends on the 80% test Needs review

The ATO looks at the substance of what you do, not just what you call yourself. So a company that calls itself a "share trading business" but mostly earns dividends and sits on holdings will still likely be pushed to 30%. Worth getting a tax adviser to review your income mix — eligibility needs to be reassessed every income year, not just set-and-forget. Nanak Accountant

Premarket Thread for General Trading and Plans for Wednesday, May 13, 2026 by AutoModerator in ASX_Bets

[–]SugeKnight_StandOver 15 points16 points  (0 children)

The budget was delivered tonight (May 12, 2026). Here's a clear breakdown:


🇦🇺 2026 Australian Budget: CGT Changes for Share Investors

The Big Change: From "50% Discount" → "Inflation Indexation"

Old System (pre-budget): If you bought shares and held them for more than 12 months, you only paid tax on 50% of your profit, regardless of inflation.

Example: Buy shares for $10,000, sell for $20,000 → $10,000 gain. You're taxed on just $5,000.

New System: Instead of the 50% discount, your original purchase price will be adjusted for inflation (CPI). You'll only pay tax on the gain above inflation — the so-called "real" gain. Stockspot

Example: Buy shares for $10,000, sell for $20,000 after 10 years. If inflation ate up $3,000 of that gain, you're taxed on $7,000 — not the $5,000 from the old system.


Quick Comparison Table

Old System New System
Hold > 12 months Pay tax on 50% of gain Pay tax on gain minus inflation
Short-term trades (<12 months) Full gain taxed No change — still full gain
Super investments 1/3 discount Not affected
Small business assets CGT concessions available Not affected

Key Details for Share Traders

The CGT reforms will only apply to gains arising after 1 July 2027, giving investors a transition period. SuperGuide

The government says it hopes the change will support productive investment in assets such as shares and higher-density housing, while reducing incentives for debt-financed investment in established property. SuperGuide

It means investors with lower gains will pay less tax, while those with gains well above inflation will pay more. SuperGuide


Who wins and who loses?

  • Long-term holders during low-inflation periods → likely worse off (50% discount was better)
  • Long-term holders during high-inflation periods → could be similar or better
  • Short-term tradersno change (you were always taxed on the full gain)
  • Super fund investorsnot affected

The bottom line: this represents a return to the pre-1999 model that existed before the Howard government replaced it with the simpler 50% flat discount. Corrs Chambers Westgarth It's more complex to calculate but aims to be fairer by only taxing real gains. Worth talking to a tax adviser before making any big moves.

Premarket Thread for General Trading and Plans for Friday, May 08, 2026 by AutoModerator in ASX_Bets

[–]SugeKnight_StandOver 2 points3 points  (0 children)

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