James Wrigley

You might have borrowed money secured against your home to then go and buy this investment, which under today's rules allows you to negatively gear.

Under the new rules, you can't negatively gear that yourself personally.

You'll be back to this kind of losses situation.

potentially quarantined depending on how that all plays out because it's a it's an you're purchasing an existing assuming it's an existing property that you're purchasing so oh yeah yeah i'm assuming obviously anyone from here on who does this will buy a new property so they'll be able to negatively gear

Yes, if it's a new property, then I would imagine that your portion of that ownership, and time will tell as we see the final legislation and the practicalities of the implementation of it, but I would imagine that you would be able to negatively gear that yourself.

Yes, your super fund doesn't get any negative gearing benefit.

They've put up just cash.

Or alternatively, you sell the property and you wind the whole thing up.

Of course, yeah.

So your 80-20 split or whatever the split was, your money goes back to the SMSF and money goes back to you individually.

You definitely need tax and legal advice in setting up that.

That's a pretty advanced strategy, not something you'd want to be doing on your own.

Interesting take on it, but I think you're right there.

So it always comes down to, and it did before, and it does going forward under this new CGT regime that we will likely have.

It all comes down to what is the alternative structure and ownership for these assets.

And there's some people that we work with that for whatever reason, they're already a 30% marginal tax rate payer in their own name.

Maybe they're still working, running a business or got assets at such a level, whatever it may be.

And for that person, it probably didn't make sense for them to take money out of super anyway, even if they're going to have to pay a higher rate of tax.

But now for that person that doesn't have any income in their own name, it may not make a whole lot of sense to pull large amounts of money out of super.

We need to remember that