Mitch

Financial Adviser, Liverpool FC Fan, Dad.

[Robin Dods @toy59496]

CGT : Summary of Current Submissions to the Panel

I've analysed the current submissions to the panel and cross referenced the legislation to ensure their validity; so far there are only 11 submissions.

https://t.co/DuNQJgIeCw

Notably, most submitters explicitly support (or don't oppose) applying the changes to residential property, rather, their objection is the extension to shares, businesses and other productive assets.

The concerns were as follows:

1. The reform is too broad: a "category error"

The housing-affordability rationale doesn't transmit to equities and business assets, yet the measures apply to all asset classes, with no direct transmission to new housing supply. Storage Lord frames sweeping in operating businesses as policy convenience rather than policy design: if the concern is residential housing, the instrument should target residential housing.

Defender Ventures argues the "distortion" justification is self-defeating: if the aim is to shift households from passive property towards productive equity, taxing both at the same higher rate cannot achieve it: a neutral disincentive is no incentive at all.

2. The indexation/loss asymmetry

Indexation applies to gains but not losses, so gains and losses are no longer measured against the same yardstick, and an investor with both a gain and a loss in the same year pays tax on a construct that bears no relationship to their actual economic position. Stern, Otso and Maddock's all flag this; effective tax on real portfolio gains can exceed 50% because losses aren't indexed.

3. The 30% minimum tax punishes the wrong people

It assumes anyone realising a gain in a low-income year is tax-arbitraging, but for owner-operators the low-income years are the cost of building the business, and the gain is deferred labour income for work already performed. Storage Lord cites a Treasury cameo where someone on $25,000 of income with a $10,000 gain pays an extra $1,600 - a 16% tax increase.

4. Risk capital, startups and venture investing hit hardest.

For founders and early employees the cost base is near zero, so indexation provides almost no relief, and the 30% minimum on a near-zero base after a decade of unpaid work taxes salary that was never paid and risk already borne.

The changes undermine diversification, since venture returns come from a few winners offsetting many losses, and would push investors toward stable mature companies instead of growth firms.

5. International competitiveness / capital and talent flight

Oktopi contrasts Australia with rivals : Singapore (no CGT on individuals), New Zealand (no comprehensive CGT), the US QSBS exclusion, the UK's EIS/SEIS, and France's regime for young innovative companies - and warns Australia is moving the opposite way.

Tier One People warns the changes may accelerate the movement of both capital and professional talent to jurisdictions with more competitive treatment of risk capital and personal income.

6. Double taxation and the franking-credit interplay

Stern and Allan Gray both note reinvested profits are taxed twice (company + shareholder), and the Budget papers ignored the franking interaction.

Allan Gray warns this creates a huge incentive for companies to pay out franked dividends and retain as little as possible for reinvestment, so growth, productivity and employment all suffer.

7. Superannuation distortion

Because super is taxed far more lightly, Deegan warns the changes create a powerful incentive to shift speculative, high-risk activity into SMSFs/super- running directly counter to the prudent-retirement-savings objective.

8. Misleading "nine in ten small businesses protected" claim

Storage Lord and Maddock's argue the $2m turnover and $6m net-asset thresholds were set in 2007, have not been meaningfully updated, and now describe microbusiness rather than real small business. Asset-heavy businesses (storage, manufacturing, hospitality, agriculture) breach them simply by needing premises or equipment.

9. Compliance burden is large and unacknowledged

Pre-2027 assets need market valuations to split gains; for unlisted interests a formal valuation typically costs $10,000+, effectively mandating valuations at owners' expense for assets they may not sell for years. Dividend reinvestment plan portfolios become an administrative burden multiples of today's.

10. Process, mandate and lack of evidence

Multiple submitters note CGT reform was not in Labor's 2025 platform and was explicitly ruled out, yet is being fast-tracked within months of the election, and call for it to be referred back for consultation or taken to an election.

Maddock's notes no independent economic review supports the changes; the Henry Review recommended only a modest cut in the discount from 50% to 40%, not this.

Defender Ventures highlights the Treasurer's own October 2024 advice that abolishing the discount "would not make a meaningful difference" to housing supply.

11. Sector-specific harms

Junior resources:
Deegan warns retail investors will simply exit the small-cap resources space, redirecting capital to term deposits, blue chips or offshore, starving the discovery pipeline.

Commercial property:
Westbridge's modelling shows the after-tax risk premium on value-add/development assets falls by roughly 43%, pushing capital toward passive, long-leased assets and away from new supply.

Picking winners:
Both Maddock's and Storage Lord object to confining any tech "carve-out" to one well-lobbied sector while leaving other operating businesses exposed.

Conclusion

Common recommendations across the submissions:

1. Confine the CGT changes to residential property
2. Index losses as well as gains
3. Drop or narrowly target the 30% minimum tax
4. Update the small-business thresholds
5. Slow the process down for proper consultation.

Welcome for comments and feel free to make submissions.

[Mitch @djmitchy]

@DavidBassanese “If we don’t do that, you’re going to have a bias towards investing through particular types of investments, and you distort the asset allocation that way,”

And then carve out new builds, certain sectors.

[The Kobeissi Letter @KobeissiLetter]

BREAKING: Cumulative crypto card payment volumes have reached a record $7.8 billion, with monthly volumes now up +230% since May 2025.

Crypto card adoption has rapidly accelerated in 2026 due to growing access to stablecoins as a payment rail through crypto cards.

In other words, more people can now spend stablecoins like fiat by using crypto cards, further driving adoption.

The growth comes amid the launch of Jupiter Global, which has seen a +648% surge in spending volume over the last 2 months.

Visa is capturing ~90% of onchain card transactions via crypto-native infrastructure partnerships like Jupiter Global.

Crypto cards are the ultimate use case for stablecoins.

[Mitch @djmitchy]

@TheKouk Not that odd.

[Mitch @djmitchy]

@TheMichaelEvery Michael, can we subscribe to get these reports?

[Mitch @djmitchy]

@MattBrannRURAL @TheMichaelEvery @Rabobank @Warwick_Long @NationalFarmers @farmer_dj @WheatWatcher @AdamCoffeyNT @CattleAus @clint_jasper Brilliant. Have just come across your after the Grant Williams podcast. Great stuff.

[Mitch @djmitchy]

@AndiDurrant Brilliant, can't wait!

[Mitch @djmitchy]

@MedeirosPanther @DearS_o_n 👆 This. 100%

[Mitch @djmitchy]

@ShaneOliverAMP This was always going to happen. The risk for a fund to deviate too far from the average meant they would hug the index. All of them.

[Mitch @djmitchy]

@KarlBrophy This is brilliant. Following you from Australia. Good luck!

[Mitch @djmitchy]

@cjoye Seems reasonable given inflation elevated in NZ?

Where does RBA need to get to?

[Mitch @djmitchy]

@rationalaussie @cjoye 👆 This.

[Mitch @djmitchy]

@JessicaDAmir Nailed it.

[Mitch @djmitchy]

@AndiDurrant @0Bex0 @Jake_Thomson Congrats! Well deserved.

[Mitch @djmitchy]

@JEChalmers @AlboMP Simple question. How many vacant dwelling charges applied in the last 12 months?

[Mitch @djmitchy]

@TheNotoriousMMA 😳

[Mitch @djmitchy]

What a hit Dominik Szoboszlai. #lfc #Szoboszlai #Gerrard

[Mitch @djmitchy]

@EntertainedAre @ttmygh @gilesmorgan71 Great pod, gents. Some very interesting and funny takes. Great to have you back.

[Mitch @djmitchy]

@DefectedRecords What an anthem. Soundtrack to my life. ❤️❤️❤️

[Mitch @djmitchy]

@goodfoodgal 😳