u/uvimateapp

Gone my idea to get second investment to max negative gearing. But PPOR is tax free. All manufactured profits tax free as well. So I'm gonna prioritize transformation of my PPOR in Frankston South into true dual living, converting old storage room to bathroom, kitchenet and laundry on a ground floor, potentially splitting rampus and adding 5th bedroom while prices on trades are still palatable.

Anyone else feel that we gonna see an inflow of disposable capital onto PPORs upgrades vs shares/new builds in next 3-5 years?

So gov is closing trusts + bucket companies strategy that were used by around 300k businesses.

https://budget.gov.au/content/factsheets/download/tax-explainers-minimum-tax-discretionary-trusts.pdf

Ok so the plan was to use bucket company to accumulate ETFs and franking credits and then distribute dividends with franks each year to me and my wife once on lower mtx. Frankies applied, refund, all happy. Now with 30% flat tax for trusts (if they do it) that plan goes to drain. Still workable, just less juice. What's the working alternatives you boys cooking?

1. Pay salaries, do some ligit work, trading, vibe coding, reconciling Xero, CMC markets and Excel, coaching, shit like that

2. Loan to director 7A, whatever that means. Interest around 9% repaid back to company (taxed on 25% btw), can work, just spend 90% of loan, pay 10% back to company, repeat, hope ETFs will cover difference

3. Debt recycling via bucket company. Basically same as #2 but loan is used to buy more ETFs on personal name. Interest on investment loan is tax deductible from any personal income (salary + dividends) plus franking credits applied. Must be a lot of ETFs on personal name, shit ton of it.

4. Combination of 1, 2, 3

5. Do nothing, get dividend from bucket, pay 30% tax (mostly offset by franks anyway), cry, drink whiskey sour, enjoy retirement

Any other thoughts? 💭