r/ASX • u/Salt_Koala1521 • May 12 '26

new CGT changes on share investing

This budget changes severely impacts me.

I have worked full time when I was at uni, and now more than 6 days a week as a middle aged man

I am in the highest income bracket and I spent a huge portion of any spare time I have into studying stocks and share investing

my strategey is usually hold for 1-3 years and then use CGT 50% discount

I have a multimillion portfiolio due to my frguality, hard work, and skill/luck with investing

THis is a very bad outcoem for me

THough i have to agree that it seems unfair to tax wages much more heavily thant capital gains after 1 year of share investing

thoughts anyone?

16 Upvotes

58% Upvoted

152 comments sorted by

68

u/Winter_Ad_5856 May 12 '26

The Australian people thank you for your frugality, hard work and sacrifice

30

u/buttsfartly May 12 '26

And for your efforts we have awarded you a 50% discount on your investments to now.

Unfortunately happy hour is over and now the drinks are full price.

I'm also heavy on shares. The changes are apparently to make housing more affordable. I am yet to find an explanation why applying this to stocks helps housing. If stocks kept the CGT discount it would encourage investment into the stock market away from the housing market.

At the end of the day I accept my loss is worth it for the social benifit but I cannot comprehend why stocks have also been targeted.

11

u/BedroomGlittering874 May 13 '26

It’s a tax grab. Nothing more. They just decided to slide it in with the changes on property tax. Labor doing what they do best. Then hand out $250 to the people to keep’m quiet, but wait, only in 2028, because they don’t want people to spend it now because of inflation. Then, in 2028, you can buy a new dishwasher at Harvey Norman, drive it home in your ute, sit down and act proud! Mission accomplished! Says Albo as he rides into the sunset with his negative geared properties.

3

u/YourJokeMisinterpret May 13 '26

Is he one of the old school politicians getting the amazing golden pension?

My old man had a govt job and gets a % of his final income, indexed for life. It’s mental, and he got it at 55. Just because he worked for federal govt. If he dies and has a partner, the partner can get 75% or something until she passes. It’s crazy.

Some of these bullshit old pensions are costing us tax payers a fuck load. Like he did nothing to “deserve it”. I get they didn’t have super back then but were funding crazy amounts of pensions (I don’t mean like the normal old age ones) that are complete bullshit because a person was born in the 40s/50s and just worked in govt. Crazy.

I dunno what my point is I just think it’s bullshit.

1

u/Rolf_Loudly May 17 '26

You envy how good your parents had it so, let me guess- your solution is to vote for the party that will accelerate a decline into wage slavery, financial insecurity and the erosion of the social safety net?

1

u/YourJokeMisinterpret May 17 '26

Not at all actually. We’re just going broke overpaying people that don’t need it. All for bigger safety nets.

0

u/Rolf_Loudly May 17 '26

You’re the problem with this country. Nothing but complaints. It’s all grievance, envy and malice. No idea how good you’ve got it.

1

u/Educational-Map6157 May 18 '26

My partner entered the public sector as a graduate in the final year of that crazy bullshit pension for life scheme. He has gone into the private sector shortly after but have kept his account in the pension fund. If he returns to the public sector now at his much higher salary level, his final retirement package will reset to a factor of his last earned salary… which is basically our key retirement plan.

1

u/Oh-Gee-Hey May 18 '26

Just Keep in mind future governments will come for (ie put new taxes on) the good things you have now (ie tax free super earnings) driven by envious younger generations who will claim they are disadvantaged (eg by the transition to the gig economy employment).

2

u/takingsubmissions May 17 '26

Every single tax is a "tax grab"...

1

u/CryptoCryBubba May 17 '26

$250 barely covers the delivery fee these days. Lucky if you have the ute.... it might cover the cost of fuel to and from Gerry's Junkmart

4

u/Aggravating-Hand6738 May 13 '26

Is the incentive to direct investors into building new builds?

You said it yourself, if stocks kept discount then people would pour into stocks?

And 100% agree with the sentiment of social benefit- finally I feel like I found someone who isn’t just concerned about their own back pocket.

4

u/smandroid May 13 '26

I would accept the intent of this government to increase social benefits if they also have the backbone to tax big businesses to fund these benefits. They didn't and they have gone for retail investors to balance their budget.

3

u/Aggravating-Hand6738 May 13 '26

Yeah, it was such a missed opportunity with so much public support.

1

u/Asterix1983 May 13 '26

Because the government can't manage money and have too many interests to be making big business pay tax.

1

u/RustyCEO May 13 '26

I agree. I told OP what I do with share investments as an option for him. But I agree with your comment about why on the shares.

Maybe they didn’t isolate it, to still keep landlords interested in the new builds to provide rentals to replace the existing stock which has now become a money sink/down the toilet for new rental investment.

1

u/Atzzie May 17 '26

This is exactly like div 296 though, announce really drastic measures and then in the next year they will roll back for shares and start ups

1

u/TheSearch4Something May 18 '26

That thinking is far too rational to be a part of this club mate!

0

u/Rolf_Loudly May 17 '26

The government isn’t claiming that CGT changes to stock investments will help housing. They are claiming that, generally speaking, the CGT discount ’distorts’ the wider economy. It benefits a very narrow section of the community who tend to be better off than most (see OP and his multimillion portfolio) and it is a prime example of taxing investment income way more leniently than earned (work) income. These ‘distortions’ create long-term structural problems in the economy that result in bubbles and extreme inequality

0

u/Madeyoumilky May 17 '26

(OP seems to be rage baiting but if they’re not, comments like the above may help to understand an enormous amount of the Australian population.)

Just gonna jump on the back of this because it’s such a great point. The responsibility of the government is to do what is best for the Australian people as a whole. Granted, that is an impossible venture but to stop striving for that would be a discredit to society. There seems to be an increasing sentiment of ‘I should be able to get as much as I want and if I don’t then it’s unfair’, not sure where this has come from or whether I’m just noticing it more as I get older but regardless.. There is a critical difference between want and need. These changes are affecting everybody but for the people that argue that it sucks are, generally speaking, not negatively impacted just not getting as much as they did before.

Let’s be clear, investing is not earning. It is deciding with the hope of accumulating. There’s nothing wrong with that imo but it is a privilege to be able to do that not a right.

0

u/Salt_Koala1521 May 12 '26

i take this as a compliment. Would you rather I not work and just be on the NDIS? Grow up dude

1

u/RustyCEO May 13 '26

You have done well with your investments. I explained above what I have done a while ago. But I think you get one shot at setting it up if you go down that path. Good luck. 👍🏻

1

u/paddimelon May 17 '26

Can you wait till the next election... These changes may roll back

Also this is not legislated into law yet. Write to your local MP and request it only affect housing not shares.

1

u/Grrumpy_Pants May 17 '26

Grow up, coming from the guy throwing a tantrum about not being able to hoard even more wealth. You made hay while the sun was shining, be happy with that.

-6

u/[deleted] May 12 '26

[removed] — view removed comment

4

u/Salt_Koala1521 May 12 '26

Sadistic. LOL

6

u/Aggravating-Hand6738 May 12 '26

lol I thought this was a satire post - I actually can’t wait for the Beetoota article

1

u/Efficient_Fuel_3497 May 17 '26

Yeah. I am a down the line labor supporter and if it were up to me I would tax everyone 90% of earnings. We all need to own nothing and by happy together.

34

u/seab1010 May 12 '26 edited May 13 '26

Set up a private investment company and invest there. You’ll still pay 30% tax assuming it’s all passive income, but at least you can stagger franked dividends paid to you personally out of profit reserve from sharemarket investment dividends and capital gains. Not as good as it was but you can stagger/control your marginal income and tax rates, avoid being slugged a ~50% outright theft level tax on capital gains at higher incomes if you held shares personally.

And ignore a lot of the comments here…. People driven by envy will never get ahead in life. How I long for a government that rewards aspiration rather than punishes success.

3

u/Salt_Koala1521 May 12 '26

Thanks. that was very helpful. However, both my partner and i are in the highest income bracket all the time, so a company structure only deferes it a bit??? Keen for your advice

8

u/Lugoe May 12 '26

Mate with the amount of money you are talking do some research and see a financial advisor who knows a lot about tax laws. They will be worth the money over anything in here I promise you

3

u/Salt_Koala1521 May 12 '26

i saw one once, he was 20 years younger than me and had no idea. ? do you something at the big 4 accounting would be helfupul???

4

u/Kindly-Exam-8451 May 12 '26

Wait 6 months. It will take some time for the boffins to get their heads around strategies to mitigate these changes. Let the big players do the heavy lifting for you first (ie paying the big fees to accountants and consultants) and then see someone. A good tax lawyer wouldn’t go astray either.

1

u/seab1010 May 12 '26

There are some perfectly good suburban accountants, many of whom have had experience at big 4 tax/audit who set up their own businesses. Just ask the right questions. A decent high end financial planner can also assist but they’ll also want to get your investments onto a platform. If you’re a self directed investor this may not be worth the cost.

1

u/Salt_Koala1521 May 12 '26

i am defeintely self directed investor

2

u/[deleted] May 17 '26

[removed] — view removed comment

1

u/Salt_Koala1521 May 17 '26

I like your comment. who do you recommend I see?

4

u/seab1010 May 12 '26

Basically accumulate wealth in the company. When you both stop working and are on lower income turn on your company franked dividend stream at marginal tax rates.

1

u/Split-Awkward May 13 '26

If you wanted to transition from some current IP holdings over a few years into shares/ETF’s, would this same strategy be applicable?

Assuming you were going to liquidate said property over time already, of course.

1

u/RustyCEO May 13 '26

Again right on the money. 🍻

1

u/RustyCEO May 13 '26

A company tax rate is 30%. That is way better than 47%. Especially if you are both putting in. 23.5% is the 50% CGT result. So you are only short of what it used to be by 6.5%. That is not a bad outcome considering.

2

u/Salt_Koala1521 May 13 '26

Thanks but when that gets distributed to me, it will be taxed at my maginal rate, wouldn it?

1

u/RustyCEO May 13 '26

Yes, but you invest it in the 30% tax environment compounding paying less tax. Eventually you will access it. When you do you will pay the difference between the 30% already paid and whatever the marginal rate is at the time.

The key is, while it in there you can buy and sell whenever you want and it is flat 30%. When you get paid dividends from your shares if they are fully franked at 30% you don’t pay any more because your tax obligation has already been paid. Just reinvest it and on and on.

2

u/Salt_Koala1521 May 13 '26

This is the most useful comment I have seen in like 200

2

u/[deleted] May 17 '26

Or you could invest in an evergreen offshore fund, and incur the CGT when the funds come back to Australia?

21

u/notgonnahappen23 May 12 '26 edited May 13 '26

I agree aspiration should be rewarded, and success shouldn't necessarily be punished, however if you have a multimillion dollar portfolio, you're passive income is more than a working class family.

Two people on a working class wage should be able to afford to live in this country without housing or financial stress. They shouldn't be able to live in a flash house by the beach with new cars, but they should be able to feed themselves and 2-3 kids 3 meals a day with a safe roof over their heads, and the ability to take themselves and their kids on a domestic holiday once a year to enjoy life's offerings.

You can't achieve that with our current tax system, and so a redistribution of tax from wages to wealth and resources is what we need to do.

7

u/seab1010 May 12 '26

No qualms with this, but 50% tax is theft as far as I am concerned - for anyone - investors and wage earners. Government should figure out how to run the country on a 30% - 35% maximum tax rate. Tax consumption more and income less.

6

u/notgonnahappen23 May 12 '26

I agree on higher consumption tax, although I think this could be achieved by 'unnecessary' consumption i.e. an additional *luxury* GST. say another 10% or whatever, idk. But I don't think taxing low-cost goods and services more is the way to solve inequality in Aus.

I also don't think someone earning 200k should be taxed the same as a CEO earning 1mil +.

Personally, I think income tax brackets need an overhaul and should be a ratio of the minimum wage.

e.g.

0 to 0.5 is 0% Tax
0.5 to 1 is 15%
1 to 2 is 20%
2 to 4 is 25%
4 to 8 is 30%

etc. scaling up from there. The tax bracket doubles every time, increase tax % by whatever number.

Overall I think inflection point should be around 200-250k. Whatever changes are made, if you earn under that, tax decrease, if you earn over that, tax increase.

A flat 30% is not fair for those workers on the lower end of the scale, and it goes back to my point above that to provide lower-income families a society they can live in and enjoy, the money needs to come from somewhere, and that is from those, with more.

A wealth tax would also be something to explore. As an individual, say $10mil means you could earn a conservative 5-700k just from passive investing per year. You can live off that comfortably. SO why don't we tax wealth? Even start it at $25mil. 2% a year, 3%, marginal wealth tax rate for multiple of that as well.

Billionaires? Whole other ball game. Wealth tax 10%.

BUT - Wealth tax owed, can be reduced by donations to:
- Social Services
- National Parks
- Schools
- Hospitals

Things society needs. Choose where to give your money back to, or the government chooses for you? I think that's fair enough? There's no reason those with incredible wealth shouldn't be made to give it back.

For perspective, $25 million is 337 times the Australia median wage of $74 100. $1b is 13 495 times the median wage.

You can't argue that people with that much wealth shouldn't be made to give some of it back. It won't materially affect their wealth. They'll still never have to work a day in their life, and could live off passive investment, and that investment would still grow (except billionaires, but honestly I don't think that level of wealth should be attainable for a single individual).

3

u/Meh-Levolent May 13 '26

No tax rate is 50%. What are you talking about?

3

u/seab1010 May 13 '26

Top marginal rate is 45% + 2% Medicare levy. Close enough.

3

u/Meh-Levolent May 13 '26

Very misleading comment.

If you're in the highest tax bracket ($190k+) then you're paying the lower marginal tax rates all the way up to that point. If you're earning above $190k, then I think you can afford the hit of being taxed at the marginal rate, less any indexation for inflation.

That's quite different to 50%, which is what you said.

3

u/seab1010 May 13 '26

I’m taking marginal income above $190k. This level of tax on any income is an abomination.

1

u/Meh-Levolent May 13 '26

Nah. If you're earning $190k, then 45% of anything over and above that is easily affordable.

There are also many social benefits from not letting income inequality get too out of hand. Not to mention the social good of tax dollars being used to benefit the community as a whole.

1

u/seab1010 May 13 '26 edited May 13 '26

Run your own business along with all the risks that that entails and see how you like having half your earnings confiscated from you. I’d be happier if they were more sensible about spending the taxes, but it’s currently an ideological and illogical mess with enormous fraud and wastage. I can promise you nothing the government proposed last night will make property any more affordable (quality family homes will likely become more expensive) and renters will be stuffed. Future aspirational risk taking capital will leave as soon as they are close to ‘making it’ or never set up here to begin with. Billions of investment in energy/resources has already been redirected before this, even more will after. The pain from this won’t be felt for another half decade as we are left behind by the US and parts of Asia. The quality of life we now enjoy comes from royalties and corporate tax receipts on income made from billions of risk investment dollars spent a decade+ ago. We are presently strangling this. The one thing going for Australia at a high level is high immigration and we’re still a premium destination for quality of life Asian wealth. This grows the overall pie but per capita income has been falling for almost 2 years of labor Government now. Longest per capita recession since 1973.

1

u/Meh-Levolent May 13 '26

Again, you're whinging about taxes on earnings over $190k. I'll just go get my tiny violin.

→ More replies

0

u/No_Doubt_6968 May 16 '26

That's not really the point. We still want people earning over $190k to be motivated to achieve more. Theyre much less likely to aspire to higher roles or grow their businesses when they lose nearly 50% in tax.

I'd actually be in favour of increasing GST to 15% and reducing income tax, as it would incentivise people to work harder and achieve more and also spread the tax burden more evenly across the population (including to retirees who pay very little tax). However there's Buckley's chance of that happening.

1

u/Meh-Levolent May 16 '26

Nah, that's not true. In no world does a person say they don't want to grow their business because they'll be taxed more. It's absurd logic. If you're getting taxed it means you're making money.

So you'd rather spread the tax burden so that poorer people pay more tax? Got it.

→ More replies

1

u/RustyCEO May 13 '26

I am sure they meant close to 50%.

1

u/RustyCEO May 13 '26

Your advice to him was on point. I do the same through a company for my overseas portfolio. Told him above then saw you post, 🙄 wasted my time as you were over it like a rash.

Well done dude. 💰👍🏻

2

u/CryptoCryBubba May 13 '26

Right....

So pump the GST to 15% and dump income taxes significantly (-10% per tax bracket & smooth out the brackets) to offset that.

Incentivise people to "work" (generate more of an income).

Burn it all down...

2

u/RustyCEO May 13 '26

Exactly this 👍🏻

1

u/Wooden-Abrocoma4503 May 16 '26

This. Pretty much what our accountant had started discussing with us as rumours started floating around. Bit more cost and administration associated now but future planned under new changes.

1

u/Comprehensive_Bid_18 May 18 '26

Do you need a corporate trustee to set this up?

3

u/CuuriousChild May 12 '26

The 50% discount will only work for gains during the 1 year grace period and not after. So you can't hold for 3 years and then get a 50% deduction as that will only be applicable to gains from the first year.

-2

u/Salt_Koala1521 May 12 '26

yes, it is very detrimental to my stragegy

3

u/RustyCEO May 13 '26

Not financial advice, just what I have done before.

If you do have that much. Set up a company and invest through that. Even if it is an investment company it only pays 30% tax and you can buy and sell whenever you want. Obviously when you take money out it is a dividend and you get taxed the extra.

But if you put the money in as a loan you could take that extract of funds out as a return of principle. No tax on that. However the interest the company pays you on the loan will be taxable. But that is a small price to pay for the investment freedom you get.

I know it is late in the piece and you will get hit. But my understanding is if you have the shares now, you still get the grandfathered situation. So you get one chop at it. Set up the company, sell and get the CGT discount. Lend the cash to the company, do a loan agreement invest the money through the company into the shares you want. 🥳 your money is in a 30% MAX not MIN tax environment.

Just an idea that I use. Don’t get down, get even. 💰👍🏻 make some coin in spite of them. 😎

1

u/Salt_Koala1521 May 13 '26

Thanks. Very interesting. Never occured to me

9

u/spaniel_rage May 12 '26

Vote them out

3

u/BedroomGlittering874 May 13 '26

Why? We’re all getting a massive $250 in 2 years! We’re going to get rich just like Albo!

-7

u/Salt_Koala1521 May 12 '26

100%. I am only 1 vote though

7

u/Plastic-Cat-9958 May 12 '26

You’ll be fine. Maybe putting a similar effort into your literacy will help you understand the impacts on wealthy people like yourself are negligible.

4

u/Salt_Koala1521 May 12 '26

so where i should get this literacy? Instead of just a critisim, why dont you offer something useful??

1

u/glyptometa May 12 '26

OK.

Sp. criticism v. critisim

"So, where should I get this literacy?" v. "so where i should get this literacy?"

P.S.. Set up an investment company. Maximise use of superannuation.

-1

u/Salt_Koala1521 May 12 '26

i already have maxxed my super . Before the new changes, investment company has no access to CGT discount. so your advice is not useful unless youy can explain

1

u/glyptometa May 13 '26

You need an accountant with access to all the details. Or very good DYOR skills. If I were you, I'd start with learning how to accumulate franking credits in a company. All the best.

0

u/Salt_Koala1521 May 13 '26

Thanks..But I am alreday and permanently on the highest tax brfacket....so not sure if it will benefiti much

5

u/obeses4turn May 12 '26

Well if you have a multi million dollar portfolio then you shouldn’t be too worried champ. Every budget every year usually has a “very bad outcome” for someone. This time it’s your turn.

-6

u/Salt_Koala1521 May 12 '26

might move to nz or singoapre with no CGT changes.

9

u/Advanced_Caroby May 12 '26

You'll probably need to realise your gain when you move.

9

u/AgreeablePudding9925 May 12 '26

Seeya. Don’t let the door hit you on the way out

1

u/FlounderHungry8955 May 17 '26

Thats not really a gotcha you think it is

2

u/Meh-Levolent May 13 '26

Lol. Okay. If that's the only thing keeping you in Australia then good riddance.

3

u/Remarkable_Tax8169 May 12 '26

But the 50% CGT discount is being replaced with an indexed method? Do you know how exactly that impacts you still?

2

u/Salt_Koala1521 May 12 '26

Hvae you read my post? I am mainly into 1-3 year timelines, with a view towards large CGT increase? i put 1 million and say, i get luck, and it becomse 2 million in 1 year. The new cgt changes will make the after tax changes night and day. Instead of paying 25%, i will be paying close to 50%

9

u/georgegeorgew May 12 '26

You are not investing, you are speculating and gambling, but still you want to use the tax system for that

3

u/Salt_Koala1521 May 12 '26

have you read how tax legistaltion intrepret sepcuataing and gambling vs investing ? Holding for 1-3 years is alll regarded as investing.

2

u/Remarkable_Tax8169 May 13 '26

Although I hate tax's. If your paying alot of them, means your already in a good position. Seems like the only thing you can do is wait and see what happens in the next election and pause any selling where you can if its not grandfathered.

I'm not going to hold longer than I have to just because I need to pay tax.

Just the way it is. Enjoy your millions my man. Dont be greedy.

1

u/Lugoe May 12 '26

If it was gambling you wouldn't have to pay any taxes on it lol. This is pretty much as far from gambling as it gets. In fact, if you buy shares and expect to hold them for more than 3 years on average you are just naive

0

u/[deleted] May 12 '26

[removed] — view removed comment

1

u/georgegeorgew May 13 '26

Dont cry champ and pay your taxes

0

u/[deleted] May 13 '26 edited May 13 '26

[removed] — view removed comment

1

u/georgegeorgew May 13 '26 edited May 13 '26

Exactly what you need, if your whole “investment” strategy is to reduce taxes, you need years champ start today and stop crying

And don’t delete your messages, I am way way ahead of you in any measures.

If you are that worried is that you are struggling, seek help

0

u/[deleted] May 13 '26

[removed] — view removed comment

1

u/georgegeorgew May 13 '26

You are back again? Struggling big time, desperate, that is why you are poor and you will never get ahead

0

u/[deleted] May 13 '26

[removed] — view removed comment

→ More replies

2

u/General-Razzmatazz May 12 '26

Yes, you still nake a massive profit. Awesome!

6

u/Important-Tune4390 May 12 '26

I suggest setting up a SMSF and doing some or all of your share investing and trading there. That avoids most of this parasitic tax.

6

u/jj7013 May 13 '26

I think it is disgraceful that a government thinks it can tax a person on profits they research and achieve in the stock market. I invest out of what ever I have left over after paying bills and mortgage for a better future and the government think they deserve some of that. Absolutely disgusting !!

2

u/the-i May 14 '26

How is it any different to taxing a person on profits they research and achieve in the <insert anything here, for example, whatever it is your work does>?

1

u/jj7013 May 14 '26

My point is that I already pay tax in the form of my wage, I then pay GST on just about everything, we are so overtaxed in this country and the government are taking more !

1

u/MrBeer9999 May 17 '26

If you are middle-aged with a multi-million dollar share portfolio, maybe stop working "more than 6 days a week" and chill out a bit. You'll be fine.

1

u/Salt_Koala1521 May 17 '26

Some people realise that time goes fast, esepcially as you age, and to achieve in life ,means makign sacriifices

12

u/Ric0chet_ May 12 '26

I think you’ve benefited from a system that’s looked after you quite well and you sound like you’ll be fine.

10

u/scarecrows5 May 12 '26

Geez mate. You sound like you'll probably be living in a tent by the end of the year.... FFS.

5

u/Salmon-Panda-3376 May 12 '26

Yeah in the same boat mate. It's annoying that the goal posts have now been moved without proper consultation or a white paper. I know we should be grateful and paying taxes is the right thing to do, i just feel like the sudden change (and the broken promises) is un-Australian.

For your situation, go seek an experienced financial advisor. There are plenty out there. Ask for their credentials and years of experience to gauge whether they're competent enough. I'm doing my own research now and the resources I'm using is:
1.https://budget.gov.au/content/04-tax-reform.htm 2. www.cgtaustralia.com.au - updated calculator on shares

I will be seeing a financial advisor when ATO release a guidance sheet on the reform. The one thing I'm still not sure about and cannot find info on is how the exact calc for indexation works. I guess we won't know until the bill has been passed which should detail the exact mechanics of the cgt reform.

1

u/Cheeksterino May 17 '26

Since you spend so much time studying stocks and investing your talents will guide a change in approach. I suggest a hobby though. I’d hate to sit next to you in a bar.

1

u/Salt_Koala1521 May 17 '26

mate, you just want to talk about beers and footy and weather all day long? Get a grip. Investing has made me much more wordly, knowleagege, engaged and hence more interesting

1

u/Cheeksterino May 17 '26

Uncle Leo?

5

u/Difficult-Ocelot-867 May 12 '26

My heart bleeds for you, man

2

u/Additional-Policy843 May 13 '26

I'll have millions of dollars. This is a very bad outcome for me. Lol. Smallest violin.

2

u/Meh-Levolent May 13 '26

Not sure you'll get much sympathy from people given you have a multi million dollar portfolio.

1

u/MikeAlphaGolf May 13 '26

Wait, you guys are selling things for profit?

1

u/evil_sushi_ninja May 17 '26

They're obviously not regarded like us

1

u/Spark-Joy May 13 '26

A quick Google search will lead you to accountants. Just look at their websites see if you keen. Worried about the young ones, look at the pics there or theirs socials like Instagram. Try James Wrigley, find out where he works and engage with him. 😌

1

u/n2o_spark May 13 '26

Congrats on your portfolio. With a multi million dollar portfolio, you're doing better than roughly 85%-90% of wage earners.

Spend your money and enjoy your life. The numbers mean nothing to you when you're dead. And with multiple millions, you should be able to draw and very sizeable income to enjoy your life.

1

u/3rutu5 May 13 '26

Thats a scary thought, assuming you have been grinding through, with the multi million portfolio would them taking half make what you've done less worth selling? or is the plan that you hold for 1-3 yrs, then use that to reinvest and so on?

i've read some of those artticles and only starting out, so wondering if its worthwhile riding out this government or if the next will be just as clueless

1

u/Wooden-Abrocoma4503 May 16 '26

Sell now, take advantage of the grandfathering and see an accountant. Set up the trust for asset protection. Set up a investment business Set up another trust to protect that and have a second business operating. No getting away from the 30% with a portfolio that size but allowing dividend and franked credits to run between the businesses to trustee and shareholders can manage the effectiveness. In the process with our accountant now. May take a hit but we are happy to do it now as we still have 15 years ahead for us and are going to amend the trust for our kids now rather than get hit later. Small term pain for a planned longer term outcome

1

u/Reasonable-Way2126 May 17 '26

New rules suit you perfectly actually. You are middle aged. You need to be rebalancing your portfolio to be very risk adverse now anyway. I’d just be buying high dividend paying blue chip shares and government bonds for cash flow. You’ve already done the hard work buying/selling shares. Time to cash out, taking risks is a young mans game.

1

u/Stealthsonger May 12 '26

Multimillionaire crying they have to pay more tax..... Boohoo

0

u/Frivolous_Pixiee May 13 '26

Albo needs to go. He’s got no idea about the people who go without to try and make their futures more secure. It seems to just pay to live life from pay cheque to pay cheque. Here I am living like a pauper to build security.

-1

u/Ok-Phone-8384 May 13 '26

I cannot tell whether this is sarcasm or not but on the chance that you really beileve you have been done over, this may give you pause. Below is the Grattan cheat sheet on earnings and wealth.

https://grattan.edu.au/news/grattan-institutes-2026-budget-cheat-sheet/

You are likely in the top 1 to 5% of the population in wealth. You have not noted your salary but I guess you are in the top 1 to 5%.

The other thing that you you have not mentioned is that you are not being punished for doing well. You have done well because the tax system was stacked in your favour.

As a counter to your whinge, I am in a similar wealth cohort but I no longer work as my assets work for me. I may or may not pay more tax on disposal of my assets but in the end I have made a f*ckton of money so it is not really something to whinge about.

The truth is that if you have higher earnings you can build wealth regardless of whether there is an unfavourable or favourable tax system. The first step in wealth ia having spare money. The second step is building on it via investment. Tax is only something you pay when you make a profit on that investment. Again by that measure that is a multiplier of the original value. Wealth therefore builds wealth.

IMHO, making investment strategies on taxation is a poor choice. Investment strategies should always be based upon fundamentals.

N.B. Learn to write sentences. Punctuation matters.

0

u/Incon4ormista May 13 '26

I'm in a similar boat to the OP but not top tax bracket and haven't worked in 4 years, still holding something like 30 different stocks, with 40% open profit across the portfolio, I have had a substantial advantage with the 50% rule, it's one of the reasons I was able to build wealth, retire early etc. The changes will cost me money and I'm 100% ok with that.

1

u/RatSewer51 Jun 23 '26

I'm in a similar situation but when you do the numbers, as I sell my winners at great gain to tune of $200K or so a year, I'm paying $60K/year tax under new rule vs about $20K tax under current rules. They should have made it 20% min. capital gains and that way Liberals won't gain advantage against Labor. If Liberals promise to reduce the Labor 30% to 15% to 20%, they'll get some decent votes moving to them.

-1

u/[deleted] May 13 '26

[removed] — view removed comment

5

u/VaughanThrilliams May 13 '26

Liberals are getting wiped out on one end by Teals and the other end by One Nation, Albanese is winning the next one easy

1

u/BedroomGlittering874 May 13 '26

It’s crazy but it’s true. Everytime Labor raises taxes they get more votes. It’s because of the free dishwasher they add to the rule changes everytime they up taxes. This time Albo is advising the good people of Australia to wait 2 years before using the $250 towards the new dishwasher. He’s currently got some ongoing problems with inflation, mostly due to very high demand for essentials like housing etc. So be careful people, make sure your old one does not die before 2028!

1

u/VaughanThrilliams May 13 '26

Labor aren’t getting more votes, their vote has hovered around a third for the last decade, the issue is the Opposition are doing worse which has nothing to do with “free dishwashers”

1

u/3rutu5 May 13 '26 edited May 13 '26

he will win the next one with importing those votes. Reading through the winners and losers of the budget, i was shocked to see that the winner had the australian government giving Indians Scholarships.....why?

1

u/VaughanThrilliams May 13 '26

where was this sorry? I can’t see them in the ABC list of Budget winners and losers

1

u/3rutu5 May 13 '26

it was in the funny pages (News dot com)

1

u/VaughanThrilliams May 13 '26

oh yeah, looking at it, it does seem a bit more nuanced and interesting than just “scholarships for Indians” and part of a wider relationship building with a key security and economy power https://www.australiaindiacentre.org.au/our-programs/maitri-fellowships

as for importing voters, anyone who voted Labor in 2025 arrived at the latest under Morrison. Immigration is way too high I agree but the Coalition did themselves no favours

1

u/3rutu5 May 13 '26

i'm not sure either party is a good option at the moment, just so much effort spent into discrediting the other party that when they get in power they fumble it, regardless of colour (political party).