With the upcoming federal election and recent banking royal commission, it is certainly a time of rapid changes.
This upcoming federal budget in 2019 in May, may just be another significant and vast changing one on the tax front.
Some possible changes may be:
- removal of negative gearing to property except newly built ones. Or Limiting negative gearing to newly built residential property. While the date is unknown, you could see this as a indicator of getting in fast before you lose the tax benefits on established dwellings (non new).
- halving of the capital gains discount from 50% to 25% for individuals. If you are thinking of realising a capital gain, this may make you consider doing it faster.
- denial of refunds in respect to excess share imputation credits. This is an awful idea, it undermines the great way the tax system ensures no double taxation of company profits and unfairly impacts retirees and investors.
- higher top end tax bracket rates and medicare levy increases
If the labour government comes in… where will all the Coalitions current policies go? Will they continue or be redirected. Is another interesting question.