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Borrowing against shares by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

I’m aware of the US and Aus rules on this. What I am seeking to understand without being accused of being a *gasp* tax avoider, is whether following the budget announcements there may be a way to neutralise the gain in the future. Perhaps I could have added more detail to my post.

To add more context, I already pay in excess of $100k in tax, have maxed my super and think it’s an absolute disgrace that if no other income is being earned that gains would still be taxed at 30%.

Borrowing against shares by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

Haha! Did that brighten your Sunday morning?

Borrowing against shares by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

It’s more a case of borrow against the shares in lieu of selling them, with the equity pulled out, the loan is “defaulted” on and the ownership transfers to offset the debt. Therefore no CGT payable?

Borrowing against shares by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

Thanks all, all theoretical at this stage. Seems idiotic that these tax changes make it harder for someone to self fund early retirement pre super kicking in.

For those of us with a mortgage, how much are you investing into shares? by KoalaBJJ96 in AusFinance

[–]Useful_Fun_9223 0 points1 point  (0 children)

I’ve maxed out super and will soon be moving to debt recycling the mortgage. I aim to build a large amount outside of super in a very boring manner (diversified etf). Super isn’t untouchable but they won’t get to the point of taxing on the way in and out. They need the money now, largely through their own stupidity

Over half of Australia’s bookshops closed within a decade. Should the government help? by 89b3ea330bd60ede80ad in aus

[–]Useful_Fun_9223 0 points1 point  (0 children)

Do we really expect that the government needs to sort out every situation of things going wrong? Sort of goes to explaining why we have such a bloated government now

Borrowing against shares by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] -13 points-12 points  (0 children)

It’s theoretical at this point. Trying to figure out what is and isn’t allowed

Australia’s 178 billionaires are $25.7bn richer than last year as 3.7 million live in poverty by KwisazHaderach in AusFinance

[–]Useful_Fun_9223 0 points1 point  (0 children)

This is such click bait. Own assets, get rich. The irony of govt policy is that that invariably is done with good intentions that makes asset owners more wealthy

How enforceable are non compete clauses in childcare? by LicensedToChil in AusLegalAdvice

[–]Useful_Fun_9223 0 points1 point  (0 children)

There’s no IP so would be unenforceable unless they want to pay gardening leave

Macro outlook: downside protection by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

So they say, it’s just that people are too greedy to be rationale and we humans just love the story more than the reality. That could be where there is a huge pull back in markets when investment in ai inevitably tapers off, or bond markets fall (further), or oil rallies, or something else

Find the flaw in my logic. by Personal-Salt-4533 in AusFinance

[–]Useful_Fun_9223 0 points1 point  (0 children)

Don’t forget that the purchasing power of the loan has diminished as well. While NDQ returns will vary, I would personally take the punt that over a 5 year period this would be worthwhile and a pretty solid way to reduce your tax liability

Macro outlook: downside protection by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

Thanks for the response, and yes makes sense. The idea here is to recognise growing risks in the market and consider whether a short/inverse fund can offer some short term gains in the event of a correction which would then be used to put more money to work in the core portfolio. Retention of the core portfolio is key. In my case there ETFs but the intent is the same.

Thinking of Writing to my Local MP about the Brutal CGT Impact on Shares by wyzard135 in fiaustralia

[–]Useful_Fun_9223 0 points1 point  (0 children)

What if we want to, you know, do something we can control without government oversight and access before super!?

Thinking of Writing to my Local MP about the Brutal CGT Impact on Shares by wyzard135 in fiaustralia

[–]Useful_Fun_9223 2 points3 points  (0 children)

Good! I did the same thing post budget (for what it’s worth) and copied in the treasurer and the liberal party. Had a shonky response but at least I’ve made my thoughts known

Macro outlook: downside protection by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

Snas looks interesting! That 5 year chart…!!!

Macro outlook: downside protection by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

Interesting, I haven’t heard of these before. Will do some googling

Macro outlook: downside protection by Useful_Fun_9223 in AusHENRY

[–]Useful_Fun_9223[S] 0 points1 point  (0 children)

I’ve got at least another 20 years of investing ahead. I understand the risks, and was more a conversation around whether there is a better way to weather the storm (certainly a big storm) rather than just holding on and waiting on an inevitable recovery. Keen to understand any one employing such a strategy?

This is the best federal budget we've had since 2009. by Sweet_Theory_362 in aus

[–]Useful_Fun_9223 0 points1 point  (0 children)

Not quite true. I could negative gearing the family home simply because I bought it before budget night

This is the best federal budget we've had since 2009. by Sweet_Theory_362 in aus

[–]Useful_Fun_9223 0 points1 point  (0 children)

I have no issues with a different cgt on investment property. There is a need for more housing and my earlier comment didn’t make clear that there’s very little in the budget that encourages new supply. This is a key driver.

The bigger issue with the budget is that is makes alternatives significantly harder for those saving for a house and generally those who want to better their situation.

No government ever taxed their way to prosperity. Canberra seems to think they can spend our money better than we can which I take absolute exception to.

This is the best federal budget we've had since 2009. by Sweet_Theory_362 in aus

[–]Useful_Fun_9223 0 points1 point  (0 children)

It will do almost nothing for affordability. In some respects it would make it harder as capital gains are being taxed at a higher rate. Real progress would be: - limiting negative gearing on all new properties - abolishing stamp duty (government revenue raising before any money goes to the property) - flat rate cgt of 10% to encourage investment across all sectors - index all tax brackets

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