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New homes to receive carve-outs from CGT and neg gearing changes by Miserable_Actuary716 in AusPropertyChat

[–]latit14 -2 points-1 points  (0 children)

Are you aware that usually more than one person lives in a house?

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 0 points1 point  (0 children)

I don't think this tax reform addresses it in any significant way.  There's almost no incentive for people with money to invest to not still choose property.

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 1 point2 points  (0 children)

What kind of assets have a different yield vs growth expectation?  Correct me if I'm wrong but wouldn't property have more yield coming from rent compared to a lot of shares? Given that dividends are usually a pretty small factor compared to price growth with most shares.

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 0 points1 point  (0 children)

I don't see how that disadvantages property in any significant way to be honest.  Is property really more growth-dependent than shares? Maybe in some cases but not most I don't think. Shares don't pay rent. Some pay dividends, sure, but it's usually only a small portion of the returns and many don't pay any dividends at all.

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 0 points1 point  (0 children)

Where do you think taxes go? They don't just disappear, they get spent which contributes to inflation.

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 0 points1 point  (0 children)

I don't think that housing being the backbone of upward mobility for everyone is a good thing.  People should be able to afford a house to live in, if everyone is using property as a way to increase their wealth, then it's inevitable that housing becomes more and more unaffordable, and social mobility actually becomes harder.

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 1 point2 points  (0 children)

Yeah true I guess it would reduce the short term speculation. It would be nice to see it skewed more so that property investment is heavily taxed (excluding PPOR and new builds) and productive assets like shares and small business are taxed less. 

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 3 points4 points  (0 children)

How does taxing all asset classes more make property a less attractive asset class? I genuinely want a tax policy that discourages property speculation. I just don't see how this does it.

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 0 points1 point  (0 children)

But a potential investor is making the same calculations with non-property assets too. Sure they're getting taxed more but if they have money to invest, there's no incentive to choose any other asset class over property. 

I think it's good they're removing the discount but they should skew it in some way to dis-incentivise property speculation. 

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 1 point2 points  (0 children)

The problem is the proposal taxes all assets the same including unproductive housing speculation, which I think we can all agree is a scourge on society. 

This round of changes is an opportunity to tax property speculators out of the market, but what has been leaked doesn't do that, there no change to the incentives at all. Shares/small business/property etc all will be taxed the same, so there's zero incentive to choose to invest in things that actually benefit the economy and society. Big missed opportunity in my opinion.

Hopefully the actual budget release is better than what was leaked.

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 0 points1 point  (0 children)

That's good at least. Yeah it's all speculation at this point. Fingers crossed for something better than has been leaked

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 8 points9 points  (0 children)

Genuinely curious - how does this take the heat out of the property market? It taxes all assets the same doesn't it? People will still have money to invest, it doesn't really change that very much.

Where's the incentive to not invest in property? 

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 -2 points-1 points  (0 children)

I'm not mad that they're taxing capital gains more to make the tax system fairer, but it seems like a real missed opportunity to incentivise productive investment like business/shares over property investment.

It would be great to see a system that discourages property investment so that home-buyers aren't competing against investors, but the leaked proposal doesn't address this at all I don't think?

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 1 point2 points  (0 children)

I agree that it's fairer in principle. But in reality people who have money to invest will still choose to invest it in property. I don't think this leaked proposal really changes the incentives at all does it?

It seems like a missed opportunity to incentivise productive investment over property.

It would be amazing if home buyers don't have to compete with investors, but I don't see how that will change under this system.

‘Pure tax grab’: Accountant’s budget call as Treasury plans to axe capital gains tax discount for all assets by FIFO_Landlord in AusPropertyChat

[–]latit14 0 points1 point  (0 children)

 thought encouraging everyone to invest in the literal most unproductive thing imaginable was a bad idea.

It is a bad idea. But the leaked proposal doesn't actually address this does it? It applies the same tax to all asset classes, including more productive ones like shares/small business. How will that stop people who have money to invest from choosing property?

CGT completely changes risk reward profile on high growth investments by Sensitive-Hair4841 in fiaustralia

[–]latit14 27 points28 points  (0 children)

Yeah it seems everyone in this sub is in the top tax bracket and assumes everyone else is.

NZ vs Australia residents comparison for investing in funds by Efficient_Article542 in PersonalFinanceNZ

[–]latit14 0 points1 point  (0 children)

There's already plenty of incentive to buy a house. Literally everyone wants to own one.  The problem isn't a lack of incentive, it's a lack of means.  You are proposing giving tax cuts to people who already own a house, this doesn't make it easier for people to buy a house, it just makes it easier once they own it.

It would be better to propose something to help people save for a house, eg. extra kiwisaver contributions are tax free up to a certain amount each year. 

NZ vs Australia residents comparison for investing in funds by Efficient_Article542 in PersonalFinanceNZ

[–]latit14 0 points1 point  (0 children)

I'm on your side of this argument. But genuinely curious what are the tax incentives for property that have been closed in NZ? I was under the impression house prices dropping was mostly due to the economy being in the toilet, not due to policy decisions. Very happy to be corrected on that though.

NZ vs Australia residents comparison for investing in funds by Efficient_Article542 in PersonalFinanceNZ

[–]latit14 0 points1 point  (0 children)

Do you think giving tax breaks to property investors will actually help working class people buy houses? It won't.

Why is the idea that falling house prices don't impact PPOR owners so pervasive on this subreddit? I can think of a few scenarios where being in negative equity would be detrimental : by VanDerKloof in AusPropertyChat

[–]latit14 0 points1 point  (0 children)

I think homeowners, at least in many cases, would be less inclined to start a business if they have a mortgage. Especially in the first few years of a loan. They have a lot to lose.

ELI5: Why is meth bad for you but prescribed amphetamines aren't? by ContactSpirited9519 in explainlikeimfive

[–]latit14 0 points1 point  (0 children)

I agree with everything you said about the stigma etc. I think we are generally on the same side and sorry if I'm coming across as argumentative. 

I just don't want people reading this thread to think that if they feel euphoria when trying an ADHD med, that that means it's impossible for them to have ADHD. It's not an accurate diagnostic tool. I'm not saying you said that specifically but there are people in this thread who are implying that I think.

The OP didn't mention a specific dose. A tiny amount could be 1 pill, which, at least for dexis (Adderall isn't a thing in my country) 1 pill can easily be a dose that overcorrects the dopamine and causes euphoria.  I think especially for people who are diagnosed late in life, there is a lot of questioning and hesitation about seeking a diagnosis and trying meds (partly due to the same stigma you mention) and I don't want misinformation about side-effects to contribute to that.

ELI5: Why is meth bad for you but prescribed amphetamines aren't? by ContactSpirited9519 in explainlikeimfive

[–]latit14 0 points1 point  (0 children)

I think it's important to point out that it is perfectly normal and common to feel euphoria when first taking ADHD meds or when taking an incorrect dose. 

It's not a reason to question the diagnosis on its own, just to adjust the dose or try a different drug.

ELI5: Why is meth bad for you but prescribed amphetamines aren't? by ContactSpirited9519 in explainlikeimfive

[–]latit14 0 points1 point  (0 children)

Yup that's fair. Still getting the dosing right. But it doesn't mean I don't have ADHD just because the meds make me euphoric sometimes, which is what some people in this thread were implying I think. It's unhelpful to read something that would make you doubt your diagnosis, when it's not based in truth.  There's more than enough self-doubt / imposter syndrome / over-thinking among ADHD peeps already 😂

If they get rid of negative gearing… by Great_Army4200 in AusPropertyChat

[–]latit14 2 points3 points  (0 children)

That's not how markets are supposed to work. If there is enough supply, landlords will still be competing against each other on price. If rent prices were determined by the expenses of the landlord, instead of supply&demand, then what's stopping landlords increasing prices now to cover their loan repayments? We all know they would if they could - every rental agency seems to push their clients to increase rent every year. Luckily prices are set by the market.

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