Budget Shock: What Share Traders Need to Know Now
episode
Talking Trading | Australian Sharemarket Strategies, Education & Trading Psychology
26 min
1 speaker
8 chapters
transcribed 1 month ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What impact does the new Federal Budget have on Australian share traders?
Louise Bedford here, the money chick and the host of the Talking Trading Podcast. Well, the federal budget has certainly stirred things up for share traders. Whether you're a share trader or an investor or somebody building wealth through the markets, you may have been wondering, what does this mean for me? There's been plenty of noise and a fair bit of confusion and fear, but today we are cutting through all of that. On the show today, I've invited Brenton Ellis and Claire Williams, who are tax experts from the Guild Group. We're going to talk about the superannuation changes, the tax traps that traders can sometimes fall into, and surprisingly powerful strategies that many Australians overlook. Because when governments change the rules, the impact on you can be astounding.
Whether you're trading through your own name, through your super fund, or even if you're thinking about legacy planning, this episode can make all the difference for you. So let's dive in. Brenton and Claire, welcome to the show. I'm going to kick off with a question for Brenton, something that has been on everybody's mind since the budget was announced. How do you think the new budget is going to impact traders?
So thanks for the question, Louise. I think a lot of people are aware by now that the budget that we just had is probably the biggest reform and change that we've seen in such a long time. The advice that we're giving to our clients is that it's a lot of the announcements still haven't achieved received royal assent there's going to be a lot of changes there's already a lot of pushbacks from different industry bodies and different taxpayers that's affecting it in different ways so our advice at the moment is to be aware of the changes but to sit tight and watch how these things evolve specifically at the moment probably the biggest things that are going to impact traders is for those who are considering operating through a family trust
the changes that they're talking about with the family trusts are substantial. And particularly for those people who the 30% tax that they're looking to impose as a minimum through trust, that can have a real detrimental impact to people considering using those structures for trading or for any other business, particularly those on the lower income level as well. So there's still a lot of information to come around this so that we can use it for planning. Accountants, lawyers, financial planners that are going to put their heads together and learn to navigate these different rules. But the advice is at the moment is just to sit tight. And if there is someone that is considering structuring at the moment, have a chat with your accountant about what is the most appropriate structure.
And it may not be a family trust. We may be pushed towards more of the traditional proprietary limited company structures.
Because it's not just how much money we earn, it is how much money we keep. And that is one of the reasons why we like to differentiate between having a trader title and an investor title, isn't it, Brenton? I want you to give the listener, in a nutshell, why both of those are differentiated and what we should be aiming for.
Sure. So Louise, we've been working together for a better part of 15 years now and seen traders from all different backgrounds and all different walks of life. From the ATO's perspective, what they look at is whether or not you're seen in the eyes of a tax officer in the business of trading and any profits or losses are treated on what we call revenue account or those who take more of a long-term view. classified as an investor and are taxed under the capital gains tax legislation. So again, linking back to the earlier question about the budget changes, particularly with the potential removal of the CGT discount, it's another area that you want to make sure that you've got the right advice and the right information from the start so that you're not losing a lot of tax that can go out the door.
How do the budget’s tax changes differentiate a trader from an investor?
now the difference between the two types of tax treatments is traders have more of a short-term view they're they're looking to have the intention to make a profit and they basically follow a technical plan that i know a lot of the the mentorees do through through the trading game as opposed to the investor that takes more of a long-term view the repetition and volume is a lot less and they're there to make a long-term capital gain
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Chapters
8 chapters
1
What impact does the new Federal Budget have on Australian share traders?
0:02–4:12
2
How do the budget’s tax changes differentiate a trader from an investor?
4:12–7:30
3
Why should traders consider the proposed removal of the CGT discount?
7:30–10:16
4
What are the most common superannuation mistakes Australian investors make?
10:16–12:59
5
How can gifting rules affect my Centrelink eligibility and legacy planning?
12:59–16:36
6
What are catch‑up concessional contributions and how can they boost my super?
16:36–19:51
7
How do re‑contribution strategies help protect wealth in retirement?
19:51–23:48
8
What practical steps should I take now to structure my trading and super for tax efficiency?
23:48–26:41
Speakers
1 identifiedMore from Talking Trading | Australian Sharemarket Strategies, Education & Trading Psychology
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