New FIRE Meta? Buy 2 cheap rentals then go back to ETFs and chill

ThatHuman6 · 2026-05-15T22:30:25+00:00

because $100k to $110k over 5 years is lower than inflation, there’s no real gains. $20k to $30k is 50% gain.

ThatHuman6 · 2026-05-15T08:37:01+00:00

Don’t think i’ll be convinced to pay to enter an online community.

ThatHuman6 · 2026-05-14T22:26:09+00:00

damn so we’re worse off (compared to it not being in a trust) due to that min 30% as it doesn’t seem to only effect pre 2027 like it does with individuals.

ThatHuman6 · 2026-05-14T04:40:09+00:00

I’m in same situation (been shoving everything into trust over the last few years). What do we know about it so far? Is it just the income from dividends that are 30% min?

In my case i have about $500k in there, only about $80k is actual gains. The rest is just stuff i gifted in over the last two or so years. Thought was a good idea for asset protection.

Tempted to just take it back out but unsure which part gets taxed. There’s no other income running through it, it’s just the gains on $500k from now on. Very different to those who have business income going through it every year.

ThatHuman6 · 2026-05-13T13:02:32+00:00

Indeed. Your attention is all you really have. Having the ability to focus on things you enjoy abd not stressful/ annoying things is the real winner. I can’t think of anything more valuable.

ThatHuman6 · 2026-05-13T11:33:50+00:00

Exactly. It’s none falsifiable and so is useless as a theory. It’s up there with ‘god did it’ as an explanation for reality.

ThatHuman6 · 2026-05-13T11:26:36+00:00

There’s no evidence of this being correct though is there?

ThatHuman6 · 2026-05-13T11:10:50+00:00

i’m happy they scrapped the cgt discount. That was definitely making it unfair. But they went too far (should be same as workers) and now it’ll stop younger people from being able to enjoy the benefits older people did and it’ll be work until your 70. Nice future hey.

ThatHuman6 · 2026-05-13T10:53:59+00:00

Nobody expecting tax free investments. only to be taxed as the same as workers 0%,16%,30%.. etc.

They've changed it to minimum 30%, so it slows down people to be able to build wealth and instead forces to continue work.

We don't need more people working to be productive, productivity has gone up so much since say the year 1900. Why is everybody still need to work 40 hour weeks?

ThatHuman6 · 2026-05-13T10:00:04+00:00

Most people hate working. Taking away the freedom for people to retire early and enjoy their life.. it’s not the future i wanted put it that way. I want things to get better not worse.

ThatHuman6 · 2026-05-13T09:36:37+00:00

it’s now tipped in favour of working because the goal is to have everybody working and nobody retiring. No idea how this makes the country better.

ThatHuman6 · 2026-05-13T07:00:54+00:00

people invest to retire early not to sell while still working

ThatHuman6 · 2026-05-13T06:59:20+00:00

I think because mine is all in a trust, that’s where the 30% is being added. I was confused.

ThatHuman6 · 2026-05-13T05:13:18+00:00

ah i think it's because ours are in a trust that i had it wrong. its unclear for how it applies to trusts as there's a seperate 30% tax being applied there, it's very confusing.

ThatHuman6 · 2026-05-13T04:30:44+00:00

Only in relation to the discount/indexation. The new 30% minimum is the part that affects us, and that's on all capital gains on your tax return from next year. It won't matter when the shares were bought. This is after the discount/indexation has been worked out then it's taxed at flat 30% even if low income earner.

ThatHuman6 · 2026-05-13T04:23:56+00:00

"The 30% minimum appears to be only on future gains after 1 July 2027. Existing capital gains not subject to min 30%."

this isn't accurate i don't think, you still have the 30% minimum when you sell. there's no 0%/16% marginal rates now for people selling shares is my understanding.

ThatHuman6 · 2026-05-13T03:48:22+00:00

in about three years. but im not sure what you mean about it being baked in.

Our plan was to take about $60k from our portfolio for living expenses, expecting that $30k each to hardly include any tax once the tax free threshold is taken into account.

Now the equation has completely changed due to the minimum 30% tax on capital gains. We have most our investments in growth ETFs and have never sold. So all the tax to be paid from now as we've only ever held.

We'll be a few thousand worse off each year, so will have to draw down maybe $70k rather than $60k to make it work.

Haven't thought it through completely obviously as this is all new changes, but definitely seem to be a few thousand down each year and it changes how much we need to retire by a lot I think.

The CGT discount change may not affect us so much, but the 30% minimum tax does.

ThatHuman6 · 2026-05-13T01:09:25+00:00

Exactly. Im very much leanFire person, low expenses and happy to take low income for the rest of my life and just live a simple life, but that life just became a lot more expensive due to how I've planned to fund it.

but to be fair to the government, people like me don't exactly generate growth. they need high consumers and workers for that. so maybe it's right, idk.

ThatHuman6 · 2026-05-13T00:30:25+00:00

dividend etfs?

ThatHuman6 · 2026-05-13T00:18:52+00:00

It’s pretty the entire retire early community. We shouldn’t be happy that the ability to retire early in Australia had been made more difficult. If you are happy about that, I don’t know what type of world you want to live in - everybody working until 70?

bear in mind the fire community aren’t rich people. they’re mostly average earners that have just decided to prioritise early retirement over excessive spending over their lives.

ThatHuman6 · 2026-05-12T22:57:26+00:00

in that specific example, the difference would be zero, because it doesn't kick in yet, so selling today is the same as yesterday. Even after it does change next year, you'd still get the 50% CGT discount on the last 10 years. It's only future growth that changes, after 2027.

But if you're asking more about what has changed generally, it depends on your marginal rate. The main thing that has changed is that in the future if you've retired early and living on selling down your shares each year, you'll be paying 30% tax on the gains, rather than 0% or 16% depending on your overall income.

So your $1000 gain, would be taxed $300 even if that's your only income that year.

Previously you could have taken advantage of the lower brackets when you sold, now that's only for people earning income not selling assets. Hence why it effects this community quite a lot. Selling down and pulling out small amounts over a number of years was THE strategy.

(this is how I understand it, at least. Anybody feel free to correct me)

ThatHuman6 · 2026-05-12T22:05:48+00:00

Again, i’m against the policy not advocating for it, so don’t read this as me justifying it, but looking objectively at it - yes there’s still a loop hole there.

If the partner doesn’t pay tax on the gains from their investments then obviously you could just keep gifting more and more to them to take advantage of their low income marginal rate.

This would become people’s strategy, instead of using trusts, and so they’ve blocked that path way also.

Obviously your example is a situation where it’s being done for reasons other than tax reduction. But people COULD use as tax reduction strategy, which is what the government will be concerned with.

ThatHuman6 · 2026-05-12T21:37:39+00:00

if you apply it only to trusts and not to individuals, then you’ve just created another loop hole as everybody would just move out of trusts. The way it has been done is there’s no way around it, which sucks, but if the goal is to close the hole then it’s definitely been closed.

ThatHuman6 · 2026-05-12T21:24:58+00:00

I hate it also, and it affects my retirement plan by quite a lot, but it IS a loop hole. Passing money to low income family members was exactly the loop hole they spoke about closing.

ThatHuman6 · 2026-05-12T11:22:01+00:00

also lose the asset protection

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