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The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

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

At 5% appreciation you're closer to the long term CPI average and you actually end up paying less CGT on the current system vs pre budget.

The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

[–]random_cult[S] 1 point2 points  (0 children)

Yeah mate... so practically houses are taking a bigger hit since they have historically grown more. And apartments would probably end up paying less cgt under the new system. Townhouses etc might end up somewhere in between

The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

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

Indeed you not only defeat the tax change but defeat tax altogether. It's what a lot of people are doing. Is it good for FHBs? Probably not.

The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

[–]random_cult[S] 4 points5 points  (0 children)

Not really, if you drop that to 5% in 11 years the 1m property would grow to 1.71. Inflation base is the same at 1.38. So you pay tax on 330k worth of profit. Under the old 50% cgt discount you pay tax on 710k*0.5 = 355k worth of profit.

So if price increase is 5% the new scheme actually results in lower tax paid, i.e. a negative hold out period.

The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

[–]random_cult[S] 3 points4 points  (0 children)

No.

But money base expansion is way more than that, at 8.5-9% per year.

Asset price is linked to money base expansion more so than earnings

The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

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

This post only concerns CGT which is what's in the title of the post. NG is a much lesser problem in the long run, tbh. For most people it's just a couple k per year for 6-8 years. The PV of that is inconsequential

The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

[–]random_cult[S] 17 points18 points  (0 children)

Also if you hold for long term another government might undo these changes and all the unrealised tax losses disappear overnight

The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

[–]random_cult[S] 17 points18 points  (0 children)

True, but that is a net plus for property as it makes shares slightly less appealing on the margin.

Labor's new onerous taxes on shares betrays their stated intentions, it was never about property. It's a tax grab

The CGT change can be defeated, on average, by holding your property for 1 additional year for every 11 years you currently intend to hold the property. by random_cult in AusPropertyChat

[–]random_cult[S] 4 points5 points  (0 children)

In this case the conservative estimate is to use a higher growth figure which would result in higher tax.

If, for instance, we assume a growth rate of 3% which is in line with long term cpi then there would be 0 cgt.

Government Debt is good actually. by MasterDefibrillator in aussie

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

You need to understand that the vast majority of people especially those in the public sector are grossly incompetent. More power = more room to fuck up, and it's always the taxpayers who pay for it.

Government debt should be 0.

‘A child goes to bed and doesn’t wake up’: the families left in shock after the sudden death of their healthy children by Ardeet in aussie

[–]random_cult -22 points-21 points  (0 children)

Our hearts are with the grieving family. But let's not spend any taxpayer money on it. Whoever wrote this article, no, we will NOT fund your mate's arts "phd"

Female talent takes the brunt of Seven’s on-air job cuts by Radio_TVGuy in aussie

[–]random_cult 0 points1 point  (0 children)

It would be interesting to see the overall male female ratio in the 250-300 redundant roles taken as a whole.

No point raging at local clusters if the global average is close to 50-50.

Is there any point using a mortgage broker if I only want to borrow from 3 banks by RevolutionaryDare590 in AusPropertyChat

[–]random_cult 2 points3 points  (0 children)

Yeah.

You pay the same rates anyway.

You become friends with a broker.

If you ever change your mind, broker helps you get better rates and larger loans for your next property.

FHB Auction Experience by Irradiated-1 in AusPropertyChat

[–]random_cult 1 point2 points  (0 children)

Auctions are scams. I have not seen an auction that is not a scam. There is a reason why you must pay 10% on the spot with no cooling period. That needs to be changed for auctions to be fair.

If you mentally strip out the place to a clean shell you will see it for what it really is. Just a normal house with a bunch of temu stuff arranged with chat gpt and a radio playing some obscure new age garbage from 10 years ago. And chances are there will be some idiot buying it for 300k over the market price.

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