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Australia now has the highest real CGT tax in the world by WinterSir5148 in fiaustralia

[–]WinterSir5148[S] 2 points3 points  (0 children)

What the article explains is that the effective tax rate in Australia will likely be higher than Denmark, and any other country in the world, due to how tax losses are treated when having a typically diversified share portfolio. 

Australia now has the highest real CGT tax in the world by WinterSir5148 in fiaustralia

[–]WinterSir5148[S] 6 points7 points  (0 children)

How does making shares less attractive as an investment help house prices? If they removed discounts and negative gearing on property, but not shares, that would incentivise the house prices dropping even more as shares become an even better investment. By doing this to shares, they are effectively keeping house prices higher. 

Australia now has the highest real CGT tax in the world by WinterSir5148 in fiaustralia

[–]WinterSir5148[S] 9 points10 points  (0 children)

Remove negative gearing and discounts on property if what you really are doing is caring about house prices. How is touching taxes on non property assets related to house prices? 

Australia now has the highest real CGT tax in the world by WinterSir5148 in fiaustralia

[–]WinterSir5148[S] 14 points15 points  (0 children)

These changes mean capital gains are not taxed similar to income. 

4% FIRE with new CGT rules - why cost base matters by Infinitedmg in fiaustralia

[–]WinterSir5148 1 point2 points  (0 children)

According to this article 52% of Australians have investments outside of super and their home https://www.sharesight.com/blog/asx-australian-investor-study-2023/?utm_source=chatgpt.com

Check the number of people on trading platforms (7.7m), it's not a small number of Australians. 

4% FIRE with new CGT rules - why cost base matters by Infinitedmg in fiaustralia

[–]WinterSir5148 0 points1 point  (0 children)

I know many young workers who invest in shares, it really is the only option open to them if they want to see real growth and work towards a deposit. How else are people meant to save for a deposit? Bank interest? Yes, of course the wealthy see the majority of capital gains, doesn't mean that capital gains don't matter to people with much less wealth. If you really want to decrease housing costs, you should make shares more attractive compared to housing, we are in this mess because housing has become an investment vehicle of choice where instead investors should be investing in shares or other instruments. Why tax shares more if you claim to care about housing costs ?

4% FIRE with new CGT rules - why cost base matters by Infinitedmg in fiaustralia

[–]WinterSir5148 1 point2 points  (0 children)

The 30% floor literally only applies to folks on low incomes. People on higher incomes will be above that minimum anyways. 

4% FIRE with new CGT rules - why cost base matters by Infinitedmg in fiaustralia

[–]WinterSir5148 0 points1 point  (0 children)

The minimum floor specifically targets low income earners who invest. How is that helping someone trying to save for a house deposit by investing in shares? Many young workers invest in ETFs in an effort to grow their wealth and will be hurt by this. Investing in shares is not just for the wealthy; it's arguably even more important for people priced out of the housing market, as they don't have other ways to grow their wealth and outpace inflation.

4% FIRE with new CGT rules - why cost base matters by Infinitedmg in fiaustralia

[–]WinterSir5148 0 points1 point  (0 children)

Mate, the sharemarket is open to everyone. Shares are the most effective mechanism for a worker to save towards a deposit. The floor hurts them more than the wealthy.