Labor negative gearing to apply to new shares

How will Labor’s negative gearing rules apply? - Cuffelinks

The risks:
1. Loss of negative gearing on shares and property. Mitigate by staying neutral.
2. Managing parcels of shares bought before and after the legislation. Mitigate with good account keeping.
3. Concurrent negative gearing and franking changes create a catch 22 - wait until franking decision is made before transferring but if transferring after decision your investments are no longer grandfathered. Mitigate by punting on the decision.

There is a lot of activity in June by people trying to balance out CGT, which may be exacerbated this year by people trying to second guess the franking decision. It might be a good opportunity based on market volatility.

 

Thanks for posting this. Received similar advice from the FP firm I use which, like many others, are exploring various aspects.

As I indicated elsewhere ages ago, when possible legislation charges are mooted, various sections of the financial industry go into overdrive. Always good when somebody else does the work for me.

Keep it up, you're all doing very well.

 

Noice

Sent a quick email to FP before I left and the response was along the lines of ZC's post.

Pays to be lazy and get others to sort this stuff out. They do this for their bread and butter and more effecient than me. Plus they usually can spul gooderer

 

Warning thread drift. After @SatayKing reminded me of Young Mr Grace I couldn’t resist this from an episode of “Are you being served”.

Might be just my sense of humour but I thought this was one of the funniest things I’d ever seen on the show.

Start at 17:45 mins for Young Mr Grace’s eye test:

 

I liked that show. That era of British TV humour was quality.

 

For grandfathered assets (shares or property), it will be very interesting to see if there will be anything that limits additional tax deductible borrowing for expenses against those assets. That is, in addition to existing Part IVA provisions.

And I should add, limits in a way that deduction on those additional borrowings would not be able to offset non investment income.