Vince Scully

in a net gain, so it's a $54,000 gain, you would pay 4,200 tax on it today.

Under the 30% limit, you'll end up paying

$13,500, so an extra $9,000.

If your income was otherwise over $45,000, it doesn't really impact you and retirees in receipt of an age pension are exempt from this and it doesn't apply in super, so it applies only to individuals.

Yes, you can, but you'll still pay a minimum of 30%.

Well, if you had enough deductions that got your income below $45,000, you're now effectively paying 30%.

So you wouldn't

put the money in super because you're costing yourself more money, but it still works generally.

So it's a fairly rare set of circumstances where you have someone with a material gain and no other income and not on the age pension.

So it's a pretty narrow set of requirements and it's about a $9,500 cost.

Yes.

So the

The change to the negative gearing provision is based on the date of acquisition of the asset.

So if it's existing today, you'll get negative gearing for life.

But the CGT change will affect all properties from 1 July 2027.

Yeah, and then when it pays it out to the beneficiary, the beneficiary gets a credit for the 30%.

Any difference between this credit and a franking credit is it can't be turned into cash.

So it means that income generated in a trust will be taxed at a minimum of 30%.

Where this gets really interesting though, is if you have a company beneficiary of the trust, the classic bucket company structure, where you have an investment in a trust,

or income in a trust, trust distributes to a company, company pays 30% tax and that's the end of it.