Individuals could be affected by:
• Losing franking credit refunds to their Self-Managed Super Funds and to themselves
• Paying higher capital gains tax
• Losing tax benefits from negative gearing into investment property
Businesses could be affected by:
• Changes to the laws for loans from Companies (known as “Div 7A”)
• Discretionary Trusts (also known as “Family Trusts”) being taxed at 30% of their income
We’re not going to recommend who you vote for, but it’s important that you have an understanding of how these tax and other changes will affect you.
For the moment, we are recommending to our clients a 'wait and see' approach before taking any specific action on any of these proposals. An election needs to be won and then legislation needs to be passed before new laws take effect. However in order to make the right choice for you, one should always be informed on each of the parties' policies, so check out this excerpt from KnowledgeShop's May 2019 Your Knowledge for a rundown of Labor's proposed tax changes and their impact on you here - 'Impact of Labor's proposed tax changes'.
• Bringing forward deductible expenses
• Deferring taxable income, and
• Managing capital gains.
2019 is shaping up to be a very interesting year!
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Feel free to contact our office anytime.