Hi Chris, I’m a young Australian who doesn’t earn a massive salary but has been saving hard and would really like to buy a home. People like me used to buy a place and rent it out, using our hard earned salary to pay the excess of loan repayments over net rental income, until eventually we could afford to move in. Someone told me that Labor is going to make that much harder, so battlers like me may not be able to get a home that way.
What should I do?
Chris says: win the lottery. Labor’s policies won’t hurt you at all if you’re already rich and have lots of investments.
Hi Chris, I’m a middle aged Australian who likes to be self reliant so I operate a self managed super fund. I understand that under Labor’s policies if my SMSF invests in Australian companies, supporting jobs for young Australians, the company pays tax at 30%, and my SMSF gets only $70 for every $100 of profit that the company makes, but if my SMSF buys a rental property it pays only 15% tax so gets to keep $85 out of every $100 net rent.
I don’t like shutting young Aussies out of the housing market, but I can’t afford to lose so much of my retirement savings. What should I do?
Chris says: don’t worry about those little f***ers, what are they going to do about it?
Hi Chris, I’m an older Australian who likes to be self reliant so I operate a self managed super fund which is now in pension mode. I understand that under Labor’s policies if my SMSF invests in Australian companies, supporting jobs for young Australians, the company pays tax at 30%, and my SMSF gets only $70 for every $100 of profit that the company makes, but if I buy Singapore shares there’s only $15 Singapore tax so my SMSF gets to keep $85. That can’t be right can it? Labor pushing people like me to support Singapore jobs rather than Aussie jobs?
Chris says: what do you care? You’re retired already.
Hi Chris, I’m the tax manager for an Australian company. For years we’ve paid tax and fully franked our dividends and our shareholders have been fine with that. But I understand that under Labor a lot of our shareholders are going to be better off (and none will be worse off) if we minimise the tax and pay dividends with no franking credits rather than if we keep paying tax and franking the dividends.
Chris says: if you start any artificial tax schemes…
No, nothing artificial, all 100% real. I meant offshoring thousands of jobs to an ultra low tax jurisdiction, bringing back the profits tax free and paying them as unfranked dividends.
Chris says:… I’ll get back to you.