Liam Shorte

Yeah, so basically the CGT changes nearly touch every asset.

So basically people need to understand the 50% CGT discount that they're used to having is now being replaced with the base indexation model that we had pre-1999.

But also it's sticking in there a 30% minimum tax on the net capital gains.

And this changes the strategies for so many people.

because of that.

So it's not just property that you've already dealt with.

It's shares, commercial properties, business assets, ETFs, managed funds, gold, bullion, crypto, whatever you're looking at, everything's affected by it.

And this is one of the real weird things about this because they said this CGT move was to try and encourage people to get out of property so that young people could get in.

But most young people are using those other assets to build up their deposits.

And now they're going to get hit.

Yeah, so going forward, traditionally people, if they were investing for the longer term, would go for the growth because they knew they were getting the 50% CGT discount.

Now I've got a feeling people are going to start aiming more towards the income side of things, especially if they're negative gearing, so that they'll want to offset those gearing costs with as much income as possible.

So the assets that are going to look attractive are

dividend-orientated shares with franking credits, international shares that pay decent income, commercial property.

And then on the flip side, there may be some assets like gold, which will come out as maybe a winner long-term because traditionally it was used as a hedge against inflation.

I know the last few years it's run well ahead, but traditionally it was there to safeguard it during times of high inflation, gold would tend to go up as well.

So under these new rules with the indexation,

with your cost-based index with inflation.

If there is high inflation, then gold will do all right out of that because there's no income coming from it.

And any growth should be covered by the inflation indexation.