Gemma Mitchell

I think the tax cuts are great, but if we actually look at how much the net impact of this is,

pretty disappointing.

I think that's just, it was kind of just like, oh, by the way, here's a tax cut in all of this devastating tax thing.

Yeah.

I think, you know, the average person will be $500 better off a year and add the 250.

So let's talk about that.

And then the discretionary trust, I think that's going to impact a lot of strategies that we do as financial advisors.

Yeah, I've got mine set up as well.

And I know we've talked about it before.

And lots of people have these structures and they're quite expensive to maintain.

So now once this comes in, it'll be, hey, does this structure still make sense from an accounting and ongoing but also now the tax distributions?

But there's lots of reasons why you might have a trust outside the tax benefits, like from a protection perspective.

So this is why when you hear changes like this, you don't automatically go, right, that's off the table for me because there's the tax benefits of property, of trusts, of all these different things.

That's a cream on top of another strategy.

It's really the only reason that you would be doing something.

Yes, I think it's very important because people are going to be hearing lots of words thrown around, even budget, negative gearing, grandfathering.

So I thought it would be a great place just to start with really the basics.

So what is the budget?

To make more or less money to make it fairer or for the government to make more money?

And that's when they go into... Deficit.