Update- Taxation
One question that clients regular raise and ask about is negative gearing, effectively losing money and getting a tax payer funded subsidy to mitigate the loss.
It is a financially flawed model that promotes poor investment decisions and takes away billions of dollars in tax revenue from the Federal Government.
One solution could be to limit the income losses to the specific investment or investment category and allow the tax payer to carry the income loss forward to offset against future income from that same specific investment or investment category in a similar way to being able to carry forward capital losses which can only be offset against future capital gains.
This is only an idea but taxation reform is both warranted and needed if we are serious about returning the budget deficit back to surplus because spending on health and social security is going to continue to accelerate over the coming decades.
However as long as it remains an available option we will continue to use and exploit it for our clients.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via Contact Us or to call me on +61 2 9267 2322.
20th-May-2015 | 
