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’.
But there may be some opportunities that open up soon to restructure your tax and wealth affairs to give you some significant tax benefits.
In the meantime, you may like to consider the following actions you can take before the 30 June to reduce your tax and grow your wealth:
- Maximising superannuation contributions without exceeding the relevant caps
- Bringing forward deductible expenses
- Deferring taxable income, and
- Managing capital gains.
If you have any questions about this, please feel free to contact the team at Stone Accountants so we can help you.
2019 is shaping up to be a very interesting year!
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