quirdan

[quirdan @quirdan]

@Sauronlordking At $45k marginal rate is 30%, say you have a capital gain of $10,000 realised, the tax on that is 30c in $5,000 under current system which is $1500. The effective rate on the CG is 15% for that person. Do it for 45% marginal and you'll see 30% is higher for everyone $0 or $300k.

[quirdan @quirdan]

@ProfRowan_ @CommSec Scammers are using the in kind creation/redemption ability as a scam vector. https://t.co/77Sji47yQ8

[quirdan @quirdan]

@ProfRowan_ @CommSec @jeffyew_ are you aware of this?

[quirdan @quirdan]

@jeffyew_ @nonamedlish Hi Jeff, any updates on these lending facilities?

[quirdan @quirdan]

@ausbtcclub If sale price higher than buy price then you boast at dinner parties and get a pat on the back. Nothing else matters. Such is the extent of the financial acumen of most Australians.

[quirdan @quirdan]

@DrCameronMurray @Cliveooooo A capital gain of 90% while CPI definition of inflation was 50% means u invested in poor low growth assets. May as well just hold cash. CGT discount was just marketing spin to make CGT ~23%, which is in line w/ world. Indexation does nothing on proper assets worth investing in.

[quirdan @quirdan]

@David_McMahon75 @chrisbrycki Used to be a div investor til I realised tax drag of lame companies paying out profits as cash. Switched to US growth compounding at 15–30% p.a. and ret. capital via buybacks. Better compounding, deferred tax, low effective CGT when not working. Now, incentives have switched.

[quirdan @quirdan]

@GeoffWilsonWAM @ausgov @AlboMP @JEChalmers @GeoffWilsonWAM how can we best help? I've written letters to Senators but how else can we have the strongest impact?

[quirdan @quirdan]

@David_McMahon75 @chrisbrycki They did no modelling. Young people such as myself use US index ETFs and US tech stocks. This is the only way I was able to get ahead. Over 10 years SP500 did 13-15% pa and Nasdaq 21%. The indexation does nothing for us. I wouldn’t invest in low growth Aussie garbage.

[quirdan @quirdan]

@chrisbrycki It doesn’t even have to be a “crazy” asset - S&P500/Nasdaq index, which are quite tame do 10-20% pa over most imeframes. Also large tech companies such as Google easily exceed that over decades. Examples in budget papers only use <5% pa assets. They didn’t do proper modelling.

[quirdan @quirdan]

@GeoffWilsonWAM @WilsonAssetMgmt @GeoffWilsonWAM yes this didn’t go unnoticed. Very commendable of you and thank you for speaking up for us.

[quirdan @quirdan]

@AshPolitik This isn’t correct because the return of the asset matters. If it’s a crap asset that barely beats CPI, the indexation method is similar. If it’s only just 10% pa such as index fund it’s totally nowhere near CGT 50%, which currently just brings it to ~25% same as OECD countries.

[quirdan @quirdan]

@RektJimmy @bowtiedstocks Nothing speculative about an index fund. It is a productive asset. If the purpose was to make property more affordable, GGT on index funds is nothing more than just a blatant tax grab. True inflation is 7-15% anyway.

[quirdan @quirdan]

@DrCameronMurray If the rate of growth of the asset is less than double the inflation rate, the index method holds up to 50% CGT discount. If it's more it widens quickly (see other reply for i.e). The 50% CGT discount wasn't a 'discount' it was just to bring CGT inline with rest of world @ ~25%.

[quirdan @quirdan]

@DrCameronMurray It doesn't have to be "abnormally high." Take an index fund such as S&P500 that has done 14.6% pa average since 2016. $1m becomes $4m. Gain is $3m, after CGT discount, $1.5m. Use indexation method of 3% pa, 1.34m cost basis, taxable gain is 4-1.34 = $2.66m.

[quirdan @quirdan]

@taipan168 @dbph It also doesn’t work even for indexes at 10% CAGR. a lot of people don’t realise that it only works for shitty low growth assets that are less than double the inflation rate. Only the worked examples in the budget docs of 4-5% show indexation is just as good as 50% disc.

[quirdan @quirdan]

@RektJimmy @bowtiedstocks Indexation using the inflation rate, as said, only works for assets that grow less than twice the rate of inflation. Stock indexes are known to do 10%, and tech 15% over decades. The indexation method is negligible on these, and in fact worse the longer the hold period.

[quirdan @quirdan]

@_Checkmatey_ @David_Wegs NPCs will tell you indexation can be the same or better than 50% CGT discount but this only works on low growth (less than double inflation rate). Do it for even 10% CAGR ie index fund returns and it does little. For high CAGR it’s almost meaningless.

[quirdan @quirdan]

@greenytrades The indexation method only works for garbage low growth stocks. If you held an index that did a modest 10%, the cost basis adjustment is almost completely insignificant. The higher the return, and longer the trade, the more meaningless it is. Run the numbers on SP500.

[quirdan @quirdan]

@anon207121 @CraigMX2024 @phongle @binance That's true. Even with a 15% withholding tax, you still get a credit from the ATO for that tax paid, so assuming you have a tax bill at all from other taxable events (i.e salary) it could still be good. Maybe a private ruling is required to get a definitive answer on ROC.