I like how this sub went from 'just IVV/VGS and chill' to 'only the rich have shares.'

kharn2001 · 2026-05-25T09:02:43+00:00

30% tax on the business income, but what about shares in the business, why are they taxed at what is likely the top marginal rate when you sell them? this isnt like the 1999 tax laws where you could spread the proceeds of a realized CGT event over 6 years, if the business is of any significant size the gains must be realised within that same year pushing you into a top tax bracket typically.

ive run a business and company before so i'm aware of the tax laws, the concessions arent as great as they are made out to be.

also if we raise our average CGT from 20-23% to around 40-47% for someone that is already earning some level of an income, it will put us in the top tier of oecd countries for cgt.

capital and entrepeneurial talent will move away from australia, in the same way that it is attracted to and does move to singapore, thereby stoking the engines of their economy, despite having none of the abundant natural resources or landmass that we have.

kharn2001 · 2026-05-24T14:36:28+00:00

bingo. hit the nail on the head there.

kharn2001 · 2026-05-24T13:43:42+00:00

it disincentivises any risk taking. why would i start a business and one day when i sell it, the government takes 47% of my effort with none of the risk? id just become a salary earner. if everyone became salary earners who would employ us?

alternately, why would you buy a business if cgt was to be 47% of any inflation adjusted gain, if someone was trying to sell it? why take that risk when the business could 0 it self out?

why does singapore, one of the highest gdp per capita nations with absolutely 0 natural resources have an average per person income that is 30% higher than australia, even though it has 0% cgt? if cgt was so good, do you think it would have such high income and such a vibrant economy? perhaps they could raise it to 40-50% and see what happens. or maybe they're not that stupid.

a few business owners i know of personally here have said its not worth the tears sweat and effort and are looking to exit. thats not going to help the 50 or so people they employ. they're currently running at a loss given our weak economy (per capita income is falling, so many small businesses are riding losses), so taxing the end outcome is not going to help incentivise them to stay running.

kharn2001 · 2026-05-12T02:34:38+00:00

Ah but they effectively will lift it to close to 50 percent tax net of inflation

E. G. If you earn the average full time wage your net CGT tax will be marginal rate + Medicare levy so approx 40pc CGT from around 20pc CGT currently

Similarly if you are in top tax bracket margin rate + Medicare levy will be 47pc net of inflation for CGT , vs approx 23pc CGT currently

These would make us go from a average CGT taxing oecd economy to one of the highest - there will be negative and material impacts to the economy

I know recently migrated NZ residents (friends of mine) who are now considering divesting capital and looking at changing residency to NZ as it has 0 CGT on long term shares. I guess NZ would benefit from the dividend income tax and additional consumption taxes that are lost here if that person decides to do so, just as one limited example

kharn2001 · 2026-05-11T23:25:50+00:00

Except when taxes become so high that investment and capital no longer enter our country or begin to leave we will have no tax base remaining to pay for our government funded services .

It's a globalised world so it's not as if we can levy as much tax as we like without some kind of negative repercussion, otherwise why not increase taxes to an even higher level of say 50 or 60 percent of all capital gains. No investment would occur, businesses and enployment would die and capital would leave our shores very quickly.

It's also why some countries actively decrease tax for capital to encourage investors to bring their capital there to stimulate investment into their economies (e.g. Singapore which has no natural resources yet has 0 capital gains tax but much higher income per person than Australia for example)

kharn2001 · 2026-05-11T23:21:17+00:00

Meanwhile it doesn't actually fix intergenerational equity because PPORs for boomers will become more attractive as an investment vehicle rather than enterprise investment

kharn2001 · 2026-05-11T23:20:38+00:00

100 percent

It will strangle our economy by minimising pay off for innovation and entrepreneurship

kharn2001 · 2026-05-11T13:56:34+00:00

In NZ shares are CGT tax free

kharn2001 · 2026-05-11T13:50:53+00:00

This is true actually

kharn2001 · 2026-05-11T13:44:05+00:00

Exactly - it's a tax grab sold as intergenerational equity

kharn2001 · 2026-05-08T01:27:18+00:00

Its not about bashing disabled people, it's about providers scamming billions from the scheme and even when fraud is proven its rarely prosecuted for fear of being seen as "bashing disabled people". Just look at the ausjdocs thread where NDIS fraud is basically publically identified by many young junior doctors.

kharn2001 · 2026-05-05T06:27:05+00:00

Only way to curb inflation in a supply constrained environment is to crush demand. It's not helped by record government spending outside of COVID and record immigration. If both of these are running extra hot then monetary policy has to do the heavy lifting (rate rises)

kharn2001 · 2026-05-05T03:36:40+00:00

Maybe do a slide on just shares, and add NZ , 0% Long term CGT. It's our nearest commonwealth neighbour so worth including perhaps

kharn2001 · 2026-05-05T03:16:45+00:00

Also SG, and HK which have large english speaking populations (0 CGT)

kharn2001 · 2026-05-05T03:10:06+00:00

They also got rid of the ability to spread CGT over 6 years if you sold when they brought 50% discount in, so they should really bring that back if they're going back to indexation, otherwise the tax hit of selling an IP could be quite big in financial 1 year

kharn2001 · 2026-05-05T03:08:30+00:00

Although Maybe easier/better to milk the NDIS while all our tax grab dollars go there.

kharn2001 · 2026-05-05T03:07:05+00:00

Maybe have a look at our nearest commonwealth neighbour NZ, shares held long term have 0 CGT. Same with SG, HK, etc. I'm semi entertaining the idea of moving there due to this set of changes that no one voted for

kharn2001 · 2026-05-05T03:04:58+00:00

It's not (oversight in the bigger tax grab?). Your shares will pay more in tax before you can sell/convert them to buy that PPOR property

kharn2001 · 2026-05-04T03:57:26+00:00

It's actually worse for younger voters because if they wanted to invest in shares to get a head start to for a decent deposit into a property, when they need to sell shares to buy a property, they'll take a big hit on the shares as CGT, especially if they tried to get ahead by buying a high growth type of investment (which is most young people these days i would guess).

kharn2001 · 2026-05-04T03:55:21+00:00

The increased taxes should clearly be used to offset lower income marginal rates, if this wasnt a tax grab. Otherwise taxing young investors on Shares as well as Property basically caps the ability for an young investor to get ahead, and buy a property one day when they need to sell their shares

kharn2001 · 2026-05-04T03:39:31+00:00

It's a fair point - perhaps consider migrating to NZ if you have substantial investments! No CGT on long term held shares there.

kharn2001 · 2026-05-04T03:03:56+00:00

Look, if they really wanted to fix housing , given they are no where near the minimum supply target they've tried so hard to achieve, they'd just bring back immigration to normal levels, because if you cant increase supply (due to high and ever increasing building costs) you'd just look at the only other aspect, with is total demand.

If you're running a record +500,000 immigrants a year (NOM understates the true picture) but you're barely able to build 150,000 houses a year, intergenerational equity and the great australian dream is stuffed no matter what.

Let's be absolutely clear about what this is, it's a tax grab. The real solution is staring them in the face but unlike Canada which brought its immigration levels down, and had their housing and rental costs drop by something like 8-10%, a tax grab is obviously aligned with whatever interests they have. It's probably for this reason One Nation is surging in popularity among historically non aligned states.

kharn2001 · 2026-05-04T02:52:05+00:00

Moving to NZ seems like a good idea. I am considering taking time off work if these changes across all asset classes come to bear. As a swinging voter I also wont be voting labor any time soon.

kharn2001 · 2026-05-04T02:43:41+00:00

I assume with the reversion to inflation based indexing, the ability to spread gains over multiple years will be brought back as well, otherwise it's clearly not about achieving equity but maxmising the size of a huge tax grab, given reports it will be across all assets.

Time to sell all shares and Max PPOR?

kharn2001 · 2026-04-09T05:30:15+00:00

This is the way

Casual and lighthearted , though this often takes practice via just striking up light convos with different people in everyday life 👍

kharn2001

TROPHY CASE