u/AMX-50-Surblinde

https://preview.redd.it/y008pa9xez0h1.png?width=934&format=png&auto=webp&s=cb74def1adfe9d257b0065cee1a7f9a3a49d1524

This is just an example, in reality you probably wouldn't be using a lump sum investment, it's more to illustrate the point.

The changes seem to incentivise Australians to use Super more, however that has risks to reform such as raising the preservation age or taxing the distribution.

Calculator is here: https://budget-2026.pearler.com/

Inputs and calculation assumptions copied from the website:

• Tax rates: 2027–28 Australian resident individual income tax brackets after the legislated 1 July 2027 tax cut, excluding the Medicare levy, WATO, LITO and other offsets. Sources: ato.gov.au and Budget 2026–27.
• Excluded: 2% Medicare levy, Medicare levy surcharge, Working Australians Tax Offset (WATO), low income tax offset (LITO), HECS/HELP repayments, other levies, offsets and deductions. Your actual tax payable will differ.
• CPI data: Australian Bureau of Statistics series for All groups CPI, annual movement to December. The latest full December year used is 2025. CPI is historical — it is not a forecast and is not a reliable indicator of future inflation.
• Growth rate: Applied as the same nominal rate every year of the holding period. Real investment returns vary year to year.
• Real (CPI-adjusted) gain: Calculated as proceeds minus indexed cost base. With one initial cost base, this is equivalent to (Total growth %) − (Total CPI %), applied to the principal.
• CGT event: Assumes a single, fully realised capital gain on a non-superannuation asset held by an Australian tax resident individual for more than 12 months.
• 50% discount method: Discount available to individuals on assets held > 12 months. Assumes no capital losses to offset.
• Proposed "new rules": Hypothetical scenario where the inflation-adjusted gain is taxed at marginal rates with a 30% minimum tax on net capital gains, based on the 2026–27 Budget proposal. The Budget proposal starts from 1 July 2027 and only applies to gains arising after that date.
• Not modelled: brokerage and other transaction costs, dividends/distributions, franking credits, partial disposals, foreign income, trust/company/SMSF structures, and small business CGT concessions. It also excludes the Budget proposal's transitional split at 1 July 2027, valuation choices, income-support-recipient exemption from the minimum tax, and the new-build choice between methods.

No doubt there are plenty of others like me, in the accumulation phase, who have had their entire strategy turned upside down as a result of last night's budget.

I've had a bit of a think about what I need to do in the short to medium term future. I'm mostly posting this to hear others thoughts and to have holes poked in my plan. These are just approximate and I'll no doubt change it as details become clearer.

1. Discard the idea of retiring fully before Super preservation age. Instead I'll look to achieve an income stream up to $45k using dividends and/or part time work.
   1. Pros: Still get to use the lower tax thresholds
   2. Pros: Reduces my FIRE number significantly
   3. Cons: Still need to work
2. Following from above, I'll continue contributing to growth shares as per usual, since the impact of of the 30% minimum tax is nullified. As I near retirement and start reducing work, I'll start prioritising high dividend yield ETFs to provide the abovementioned income stream.
   1. Pros: still get high growth from investments
3. Max out super concessional contribution cap. This is now the most tax advantageous investment vehicle and it would be silly not to take advantage.
   1. Pros: Pre-tax contributions taxed at 15%
   2. Pros: Can be withdrawn tax free at preservation age
   3. Cons: Need to wait until preservation age
   4. Cons: Can be subject to future reforms (hopefully grandfathered in)
4. Look to upgrade my $700k Sydney townhouse to a house in the $1.5-$2 million range as soon as possible.
   1. Pros: when I downsize, PPOR gains are tax free.
   2. Cons: could be stuck in an underperforming market, especially considering the impacts to the broader property market as a result of CGT and negative gearing reforms.
5. Think about how I'm going to structure future inheritance towards my child. So far the best idea I have is to incorporate that into my super, and give it as a gift once I reach preservation age. But again I'm very wary that this will be subject to reform.

Hallo, kan enige iemand vir my musiek voorstelle gee van die afgelope 10 jaar? Ek is 10 jaar gelede al uit die land so is nie ingelig oor enige nuwe musiek nie.

Musiek waarvan ek hou, onder andere:

Chris Chameleon

Jan Blohm

Foto na Dans

Fokofpolisiekar

Valiant Swart