Investors with existing properties will be grandfathered as far as NG goes..From then on only newly constructed buildings will be able to NG
of sorts , newly acquired existing house investors will only be allowed to claim to the income of the property , the excess of negative returns will not be claimable and the losses will NOT be carried forward as per share losses. In fact these new rules will impact upon share lending as per margin loans , derivatives . New shares will not be allowed to carry forward losses as present....These proposed new rules applies to houses and shares and any other investment vehicle.
The question I would ask ..after you buy a newly constructed property and then when you sell it , it becomes an existing house , so what investor in their right mind would buy under these proposed rules...??
Then we have the reduction in CGT from 50% to 25% after one year...losses cannot be carried forward..
Then we have the stealth upon franking credits...
I hate the term shareholder ....if you own a share then you own a part of the business you are in fact a company owner...
YOUR company pays the tax on your behalf and issues you with the tax offset.
The GOVT incentivized a self funded retiree policy whereas retirees paid zero tax in the pension phase , this incentivized folk to become self funded and for the GOVT to relieve pressure/blowout of the old age pensions under the welfare system.
The Govt does not give anything away and I would say that the cost of the franking credits cashed out would have been costed against the old age pension.
Now Labor wants to grab with both hands...
The Labor Party proposes two schemes which will disincentive investors and self funded retirees. I can forsee SMSF retires spending up big and paying off the kids mortgages to get back onto the old age pension as most would be infuriated and had given up on any form of saving , why save when your funds will be stolen? Who would want to property or share invest ?
For me its just a one hit money grab for other peoples money , an envious spiteful parasitic honey pot dip .
