WSSHTY - Post Budget Part 1 - Negative Sentiment and What You Need To Know About The Changes_V2

Now I want to focus on what that actually means for you.

Now I'm going to talk about this through my lens, what I'd be doing.

Now we all know that negative gearing is going to be taken away for existing properties, for anything that's been purchased after 12th of May, that is.

Anything that's been purchased prior to the 12th of May, we're going to get that grandfathered in.

We all know now about the indexation method and the unproductive tax entities.

We all know about The 50% CGT discount being only available for new properties.

We know that it's going to impact shares, investments altogether.

There's carve outs going to happen for small businesses where they'll still be eligible for the CGT discounts for businesses now up to $10 million.

We know that testamentary trusts are going to be somewhat excluded.

this trustee tax but what does it all mean for me as a everyday aussie i'm going to be doing this topic split across two episodes for the everyday australian as an investor and then also for small business as well and there's a couple key things that we need to take into consideration first thing that i'm going to look at is i need to be calculative and deliberate now these are two words you'll hear me across this episode and the next.

I'm going to repeat it many, many times.

You need to fundamentally understand the type of asset that you're going to be buying in.

What is the business plan and business strategy? Now, I've said that across any investment, we need to have a business plan and a business strategy for every asset that we buy.

But this now is more so than ever before because we need to determine and understand how long we're going to be owning the asset for, the type of asset that we're going to be buying, Are we looking at buying this very early into its market cycle where there's going to be some really strong capital growth early on? Are we looking to hold this for 10 years? Is this an income play asset? Is this a capital growth asset? So we really need to hone in on the type of investor that we want to be.

For many of the older clients that I've got, they're going to be focusing more on the income play.

They don't really care too much about what level of growth they're going to see from the asset.

I've seen from Senate hearing committees, there's going to be a flight to a lot more income producing assets, such as big blue chip shares, giving the four or five percent yields, but with very stable amounts of growth or little growth, depending on which way you look at the coin.

And that will then force potentially the prices to increase.