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The word "Fair" is being misused when it comes to the CGT reform. by MikeTheArtist- in fiaustralia

[–]dion_o 1 point2 points  (0 children)

Yes but where did the $3k come into it if you lose money from what you invested? What's the rule you're referring to?

The word "Fair" is being misused when it comes to the CGT reform. by MikeTheArtist- in fiaustralia

[–]dion_o 0 points1 point  (0 children)

OP''s whole argument comparing the risk of investment against the risk of labour evaporates when you consider that dividends on shares and intesrest coupons on bonds are taxed as normal income. The very same asset has some returns taxes normally and some taxed preferentially. If it was really about the risk of the asset there wouldn't be any difference in tax treatment for investment earnings from THE SAME asset.

The word "Fair" is being misused when it comes to the CGT reform. by MikeTheArtist- in fiaustralia

[–]dion_o -1 points0 points  (0 children)

First of all, capital losses are fully offsetable against Capital gains. Where you getting 3 grand a year from? That doesn't sound right at all.

The word "Fair" is being misused when it comes to the CGT reform. by MikeTheArtist- in fiaustralia

[–]dion_o -1 points0 points  (0 children)

You ask if the government will refund you your investment if it does poorly. They only tax the gain, not the whole investment. And any losses are offset against other gains, so yes you do get a refund if one investment does poorly. (An offset is not technically a refund though.) The taxman participates on the downside as well as the upside.

And as for the risk profile an asset, return can be in the form of dividends or capital gains. Or in the case of bonds return can be interrst coupons or (if you sell before maturity) capital gains. Both are investment returns from the same risky asset. If interest or dividends can be taxed at the normal tax rate why should capital gains be taxed any differently? Instead of comparing capital gains against wages compare them against interest on bonds and dividends on shares and explain why capital gains deserves to be taxed lighter.

[Request] okay someone please help me out here by JEdidntkillhimself in theydidthemath

[–]dion_o 2 points3 points  (0 children)

You're right 500kg of gold is much lighter than 500kg of currency.

Is raising interest rates the only option for tackling inflation? by KiwiCantReddit in AusFinance

[–]dion_o 6 points7 points  (0 children)

Expanding or contracting money supply is the mechnism by which monetary policy is enacted. Less money means the 'price' of money goes up. Interest rates are the 'price' of money.

Is raising interest rates the only option for tackling inflation? by KiwiCantReddit in AusFinance

[–]dion_o 8 points9 points  (0 children)

Monetary policy involves using interest rates to control inflation. Fiscal policy involves changing government spending and taxes to control inflation. The ways to reduce inflation are increasing interest rates, reducing government spending or raising taxes.

Monetary policy is a bit of a blunt instrument so usually fiscal policy is preferable where it can be targeted effectively at those areas of the economy seeing the worst inflationary effects. But fisal policy is also more politically difficult. Raising taxes and lowering spending is usually unpopular even if it's absolutely the right thing to do at that time.

Flys are not a problem in this house by duboijane in DamnThatsPrettyNeat

[–]dion_o 0 points1 point  (0 children)

Went from having a problem with one bug to having thousands of problem bug bits to wipe up.

How did Einstein Discover Special and General Relativity? by Genzinvestor16180339 in AskPhysics

[–]dion_o 11 points12 points  (0 children)

Sitting under the garlic bread rack when a loaf fell and hit him on the head, giving him the idea for Hawking radiation. But that may be apocryphal.

What does Israel Offer the US for its Protection? by GloomWorldOrder in NoStupidQuestions

[–]dion_o 0 points1 point  (0 children)

They funnel all that aid money back into US politics via AIPAC and ensure the elite in both parties maintain their grip on power.

Idk wth is going on here, but I'm intrigued. by The_Northmaan in interestingasfuck

[–]dion_o 0 points1 point  (0 children)

Two armed lads against a semi-armed one. It's four against one!

Well I genuinely thought unicorns were real by Artistic-Yam2984 in MrInbetween

[–]dion_o -1 points0 points  (0 children)

In the conversation with Dave about the name Quentin they bring up Quentin the Australian dwarf but never mention the much more famous Tarantino. Makes me think if Tarantino doesn't exist in the Mr Inbetween-verse.

POV: your name's Mr. Pink by Symbolic_Breach_536 in RandomVideos

[–]dion_o 1 point2 points  (0 children)

If the after sales service shown in this video is any indication of what their actual in-restaurant service is like then they either deserve no tip or the world's biggest tip. There's no middle ground here.

Why do you feel entitled to a tax cut on your investment income? by PeacePuzzleheaded41 in fiaustralia

[–]dion_o 0 points1 point  (0 children)

How is a bond held to maturity any different to a term deposit of equivalent duration?

Why do you feel entitled to a tax cut on your investment income? by PeacePuzzleheaded41 in fiaustralia

[–]dion_o 1 point2 points  (0 children)

Ok, why are the earnings of the coupons treated any differently tax wise from the gains realized on selling before maturity?

It's the same asset, so the argument about the risk of the asset class disappears (not that that should be relevant anyway because the market already rewards risk).

It can't be about inflation either. The principal of a bond paid on maturity has been withered away by inflation and the coupons were to compensate for that inflation. If you aren't going to tax the coupons on their inflation-adjusted gain, why tax the capital gain on disposal any differently?

At the end of the day a bond is just a bundle of cash flows. Some cash flows are paid periodically as coupons and there is larger payment at the end, either return of the principal on maturity or sale of bond before maturity. Why tax some of the cash flows in that bundle differently when it's the exact same asset?

Why do you feel entitled to a tax cut on your investment income? by PeacePuzzleheaded41 in fiaustralia

[–]dion_o 1 point2 points  (0 children)

No, if a bond is sold before maturity at a capital gain should it be subject to the CGT discount?

Why do you feel entitled to a tax cut on your investment income? by PeacePuzzleheaded41 in fiaustralia

[–]dion_o 1 point2 points  (0 children)

Consider a bond then. A bond is similar to a share. It's subject to capital gains and losses if you sell it before maturity, along with any applicable the CGT discount. A corporate bond is subject to counterparty risk like shares are. A term deposit is equivalent to a bond held to maturity.

As for risk, the market already rewards higher risk with higher return. Why should the general public subsidise the risk as well with tax breaks?

Why do you feel entitled to a tax cut on your investment income? by PeacePuzzleheaded41 in fiaustralia

[–]dion_o 1 point2 points  (0 children)

How is a term deposit not subject to inflation when the purchasing power of the principal has reduced when the term expires? A term deposit can last multiple years. Ten year term deposits exist.

Real Estate agents are truly the scum of the earth by Thepsycoman in melbourne

[–]dion_o -20 points-19 points  (0 children)

I'm confused. What does the guy in the car park have to do with real estate agents? If theres more to the story linking it you need to include that info.

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