its the middle-class who make capital gains. (the rich are gonna pay the least tax, thats a given)
and theylle still find a way to pay under the 30% that every working class man and woman in Australia have deducted from their weekly pay every single week
you can still voluntarily contribute to super and pay 15% on that portion of the gain for example.
your argument is a shirking one. trying to lumber the bill for hospitals and roads and schools and police stations and soldiers onto the working man and women: the cleaners, the aged care workers, the supermarket workers: all those we need who cant work from home and who have nothing to invest.
What occupations do you consider to be working class? Is it just blue collar or do you include some white collar roles too?
How do lower income earners get into the property market when inflation is outpacing wage growth and property prices are climbing quicker than lots of people can save a deposit for a home? Renters with spiralling rental costs get trapped and with less investors purchasing investment properties moving forward then a market already struggling to meet rental demand is put under more pressure further pushing prices up.
The middle class, who is that exactly, the average person the nurse, school teacher or tradie?? all paying PAYE as it is… given that the ATO already say they are the ones carrying the tax burden and after FBT rebates etc the lower brackets are paying sfa, what you might call the bludgers that are using all the services and shirking.
The point is a low income earner will pay the full 30% regardless of how low his income is. Thats a rip off.
Also I don’t think you have a good grip on the tax or super system, you cannot make a contribution into super from an asset sale without being hit with CGT first.
Not sure what you’re referring to RR as the $30k per year is for concessional contributions which includes employer SG payments, salary sacrifice amounts and any after tax contributions.
The 3 year bring forward rule only applies to super balances less than $500k.
The annual concessional super limit for 26-27 is $32500 which includes employer and personal contributions together.
If your super balance is below $500k at the end of '26 you can can contribute more than the $32.5k by utilising the unused cap from the previous 5 years.
Your assertion that you can earn $150k CG every 5 years and effectively pay only 15% tax by putting it all into your super, can only work if they have not earned any income and therefore not received any super contributions from their employer in the last 5 years.
On a different angle of negative gearing,I somehow hark back to a Frontline Episode in Series 3(The Simple Life)when fictitious Current Affairs Host (West Aussie from Bunbury)Mike Moore,is seen in the Property Section of The Age(on a very slow news day)purchasing a $3.2 Million property in South Yarra.
A small part of the conversation went like this -
Domenica - “Is Mike buying a new House?”
Brooke - “He’s not buying Dom,he’s investing!”
Domenica - “Oh!”
Brooke - “Ever Heard of Negative Gearing?”
Domenica - “No.”
Marty - “Ever heard of a Sh*tload of Money?”
Domenica - Gasps.
An even funnier conversation takes place between Publicist Trish and Enor,…EP Prowsey,with Prowsey doing his head in over Mike’s Financial Fortunes,…
Make of that what you will,…
Source - Frontline,Series 3,1997.
The Simple Life
Working Dog Productions
Rob Sitch,Tom Gleisener,Jane Kennedy,Santo Cilauro
And a wonderfull supporting cast On and Off-Screen.
Correct TT, as well as that you would need to still be in the accumulation phase, not in the pension phase (retired) of your super, for most this is 60 and above or for some older 55 and retired.
Super earnings are tax free once retired so prior to this budget any CGT earning, say 50K for that year would be taxed at the normal income tax rates with only a portion taxed at the relatively high rate of 30% …the forst 18K or so being tax free etc…
Now with Tax A Lot Albo you will get hit 30% top dollar on the entire 50K…even though your other earnings a fully taxed already and count as zero income.
As I say a total rip off…
More and more outrage growing at this budget esp the CGT rates for Start Ups and Business Sales …apparently it was all about improving housing supply..BS…Esp when the genius Labor boffins even admit construction will actually decrease in their own budget papers…why is that ..well the only the builder gets to Negative Gear, once on sold the next buyer loses all the tax deductable costs, so this makes off the plan projects harder to market and sell, if you cannot sell them then they wont get built, an absolute master stroke Albo..
How about first home buyer going out the boon docks for cheap house and land packages…forget it , now landlords will be out there competing with them like never before as thats the only place you get a tax write off now….builders will jack prices up.
That’s only true in some circumstances and certainly not true for all self employed people.
Sole Traders and Partnerships have no obligation to pay themselves super. But lots do and those who don’t, often invest in shares and property as an alternative with more liquidity, not having to wait till retirement to see the benefit.
Directors or as an employee of your own business you are generally required to pay super to yourself through your business if they are drawing a wage under normal PAYG arrangements.
Contractors may also get paid compulsory super by the company who they contract too just like a normal employee would if they earn the majority of their income off one contract.
And let’s not even start the discussion on self employed who use a trust and what Labor have done there which in some circumstances can see a 60% tax on earnings - thats outright theft by the Labor government.
if your familiar with a bell curve, you will agree, there is absolutely nothing regular about them, although certainly they will often be held by mothers and fathers.
taxing trusts is good, fair, policy.
its a complete no-brainer socially, politically, economically, morally and logically.
but of course the greedy and self-interested will bleat
yes, minimising tax legally is a no-brainer too, hence the tax law changes
