I mean, is that still the way you think about things post-budget or if you sort of, has your sort of strategy changed over the years?

Well, look, I think property has always been a core part of the planning that we do with clients because, look, the way I see it, the maths is it's pretty undeniable and just parking the question of investment property or your own home for a moment that there really aren't any other asset classes where you can get a quality asset essentially with only a 20% deposit or less, and you've essentially got five times leverage with an asset that's growing.

And obviously, if you're using leverage, you need to be careful with risk and be smart with your planning.

And that's exactly why planning is so important in this space.

But I love shares as well.

I think crypto is a really interesting space and probably has a place for people too.

But when you look at the numbers, property does tend to win.

What's some of the things that you can see that have been quite a big shift in terms of post-changing tax policy?

... what, what, what are the tax consequences of someone who works from home almost full-time?

Well, it really comes down to one question, and that's whether has part of your home become a place of business? So if you're an employee that's working from home from a spare room a few days a week, you're probably pretty fine.

Um, but where it can really bite is if you've got that dedicated space, like if you're a hairdresser and you've got some, some room out the back, an accountant, and you've got clients coming to the house to see you.

Essentially, in that case, you're, you are entitled to claim a, a slice of your interest rates or sometimes even rent.

But then on the other side of that, you can get hit with capital gains tax on the, basically the percentage of your house that's dedicated to be that place of business.

Then when I sell the house, I might have to pay capital gains on that workspace.

Correct.

It's-- So it's where it's a dedicated workspace, and that's the, the, the ATO are pretty particular with the wording that they use around that.

... what, what, what are the tax consequences of someone who works from home almost full time?

Well, it really comes down to one question, and that's whether has part of your home become a place of business.

So if you're an employee that's working from home from the spare room a few days a week, you're probably pretty fine.

Um, but where it can really bite is if you've got that dedicated space, like if you're a hairdresser and you've got some, some room out the back, an accountant, and you've got clients coming to the house to see you.

Essentially, in that case, you, you are entitled to claim a, a slice of your interest rates or sometimes even rent.

But then on the other side of that, you can get hit with capital gains tax on the, basically the percentage of your house that's dedicated to be that place of business.

Then when I sell the house, I might have to pay capital gains on that workspace.

Correct.

They need that kind of million dollars to continue to keep being paid out to them from their investments.

Well, what I found is if you're earning a million bucks a year, you start doing some pretty cool shit.

And then it's like it gets hard to wind back from that stuff as well.

You just get accustomed to a certain lifestyle.

And yes, maybe you can wind it back a little bit.

But the question is, do you want to, firstly? And a lot of people don't.

The second one is what are those things? Because if you're pumping, like you're doing something really right to be earning that much money.

Yeah.

How do you think these sort of being a voice for the industry has positioned where you are today?

Well, look, when I started my business, I think a lot of the traditional path in financial advice is to find some referral partners and get like an accountant, mortgage broker or these sorts of professionals referring in.

But when I started my business, I started from scratch.

I didn't acquire a business and we've grown organically for the whole sort of journey.

But that made me feel a bit nervous, the idea of relying on someone else to be able to grow my business, pay my rent.

And so I figured that content was a way that I could build my own audience and therefore build my own demand.

And So that was essentially the start of the journey.

I'm not trying to get into the bottom of them, but I want to see how have these sort of events contributed to how you change yourself and your business?

So what can you tell us just at a top level?

So the details are just coming in.

But essentially, this is around the small business capital gains tax changes.

So the new capital gains tax rules apply.

And essentially, there's a lot of, I suppose, business owners that will end up paying a lot more tax as a result.

What Anthony Albanese has announced is that they will increase the threshold.

It is quite complex, this area, but essentially there's a threshold where if your business is at a certain size that they give you a 50% capital gains tax discount.

to ask you this quickly, knowing full well that no one watching will do it on July 2, but is there anything we can start early in this process to make it easier for this time next year?

So it's leverage

... savings alone.

Yeah, it's all, it's all leverage.

And, you know, obviously there's, um, there's talk of changes to the, the rules and those sorts of stuff, but, uh, ultimately it's the leverage part that, that makes you the money.

The tax benefits are nice to have, and they're the sort of the cream on top.

But if you can, you know, use a $100,000 or $200,000 deposit to get you a million dollar property, or you just use existing property equity even better, um, you know, so long as you choose good property and you're smart with your strategy, and of course you need to manage your risk.

But, um, that- that's typically going to allow you to build your wealth much faster than if you're just saving and investing into shares.

Yeah

So is there an argument for some of those people in that bucket todivest, to sell off their shares before the new changes come into place?

Well, I think that one of the-- Obviously I'm quite biased as a financial planner, right? And this is the stuff that we do every day is help people with these sorts of decisions.

But I would say that now, more than ever before, it's, it's much more important that you're really clear on your plan and your strategy, and whether that's a plan with a financial planner or it's a plan that you're doing on your own.

And I think that people should be looking at, well, when is it that they will realistically be able to purchase a property and, um, yeah, and then what is, what are the right investments that sit alongside that? If, if you're intending to purchase a property in twelve months time or even eighteen months time, typically a financial planner wouldn't necessarily suggest that you have it in shares.

I think a lot of people do that because they get frustrated with you put money in a bank account, it's essentially going backwards after taxes and inflation, and so you want to get a bit more.

But, uh, because the share market is volatile, it goes up and it goes down.

It's really possible-- No one's got a crystal ball, so it's possible that the share market goes down significantly, like forty percent or more even, and stays down for a longer period of time.

Mm-hmm