1 00:00:00,080 --> 00:00:02,920 Speaker 1: Welcome to Sugar Mamma's Fireplay, the podcast that helps you 2 00:00:02,960 --> 00:00:07,480 Speaker 1: build financial independence, create long term wealth, and protect your 3 00:00:07,560 --> 00:00:12,240 Speaker 1: financial future with smart, mindful money decisions. I am your host, 4 00:00:12,280 --> 00:00:16,200 Speaker 1: financial planner, Canna Campbell. In today's episode, we're tackling something 5 00:00:16,239 --> 00:00:20,160 Speaker 1: that has sparked a lot of concern even fury in 6 00:00:20,239 --> 00:00:24,880 Speaker 1: the financial world. That is the proposed thirty percent tax 7 00:00:25,040 --> 00:00:31,560 Speaker 1: on unrealized capital gains inside superannuation for account balances over 8 00:00:31,800 --> 00:00:36,400 Speaker 1: three million dollars. Now, I know that that number may 9 00:00:36,560 --> 00:00:40,160 Speaker 1: sound far away for a lot of people, including myself, 10 00:00:40,640 --> 00:00:46,880 Speaker 1: but this proposal has serious implications for all Australians, not 11 00:00:47,000 --> 00:00:50,800 Speaker 1: just those with large super account balances. You see this 12 00:00:51,120 --> 00:00:56,440 Speaker 1: potential tax, this changing rules actually represents a major shift 13 00:00:56,640 --> 00:01:00,200 Speaker 1: in how our wealth could be taxed and even a 14 00:01:00,320 --> 00:01:03,560 Speaker 1: road away, and we need to understand what this actually 15 00:01:03,680 --> 00:01:07,960 Speaker 1: means for us and our long term financial security and 16 00:01:08,120 --> 00:01:12,640 Speaker 1: retirement strategies. Now, this episode is not just for people 17 00:01:12,680 --> 00:01:16,440 Speaker 1: with self managed super funds or high balances. This is 18 00:01:16,720 --> 00:01:20,679 Speaker 1: for superannuation account holders like you and I, everyday people 19 00:01:21,200 --> 00:01:24,960 Speaker 1: and of course everyone or anyone who actually wants to 20 00:01:25,040 --> 00:01:29,399 Speaker 1: understand and protect their financial future, particularly if they do 21 00:01:29,520 --> 00:01:34,640 Speaker 1: plan on having a long, luxurious and secure retirement. So 22 00:01:35,120 --> 00:01:39,240 Speaker 1: let's get into this straight away. Bocome back everyone. As explained, 23 00:01:39,280 --> 00:01:44,479 Speaker 1: we're going to talk about this proposed superannuation tax. Now 24 00:01:44,600 --> 00:01:48,440 Speaker 1: what exactly is this? So Labor is proposing from the 25 00:01:48,480 --> 00:01:53,080 Speaker 1: first of July in twenty twenty five, superbalances above three 26 00:01:53,160 --> 00:01:58,640 Speaker 1: million dollars will face an extra fifteen percent on unrealized gains. 27 00:01:59,400 --> 00:02:02,920 Speaker 1: The con t reversial part here is the word unrealized. 28 00:02:03,640 --> 00:02:06,640 Speaker 1: The unrealized gains are going to be taxed. So what 29 00:02:06,640 --> 00:02:09,320 Speaker 1: this means is even if you don't actually sell your 30 00:02:09,360 --> 00:02:13,160 Speaker 1: asset within super or even receive any income. For example, 31 00:02:13,200 --> 00:02:16,320 Speaker 1: you know your superannuation own say a property, and it 32 00:02:16,360 --> 00:02:19,120 Speaker 1: grows one hundred thousand dollars just over the three million 33 00:02:19,160 --> 00:02:22,080 Speaker 1: dollar mark, and say it's gone from being three million 34 00:02:22,120 --> 00:02:24,520 Speaker 1: dollars to say three point one million dollars, So you've 35 00:02:24,520 --> 00:02:26,600 Speaker 1: got one hundred thousand dollar game. You might have to 36 00:02:26,639 --> 00:02:30,480 Speaker 1: come up with an additional thirty thousand dollars in tax 37 00:02:31,000 --> 00:02:34,720 Speaker 1: without actually having to sell that property or even receive 38 00:02:34,840 --> 00:02:40,200 Speaker 1: necessarily any rental income from that property. So this isn't 39 00:02:40,240 --> 00:02:43,320 Speaker 1: just like a tax increase, it's actually a change in 40 00:02:43,400 --> 00:02:49,280 Speaker 1: the underlying definition of taxable income because normally you only 41 00:02:49,320 --> 00:02:53,160 Speaker 1: pay capital gains tax when you actually sell that asset. 42 00:02:54,040 --> 00:02:57,519 Speaker 1: This is an unrealized definition and this is the biggest 43 00:02:57,560 --> 00:03:01,200 Speaker 1: concern and worry and really what is making me really 44 00:03:01,240 --> 00:03:04,720 Speaker 1: frustrated and angry because what it does is it undoes 45 00:03:04,840 --> 00:03:08,480 Speaker 1: all the trust, all the attractiveness and the value that 46 00:03:08,520 --> 00:03:14,600 Speaker 1: has been built since superannuation began in the early nineties. Now, 47 00:03:14,880 --> 00:03:20,240 Speaker 1: why is this so dangerous? Is this really setting a precedent? Well, yes, 48 00:03:20,320 --> 00:03:24,600 Speaker 1: I think so. You see, Australia's tax system has always 49 00:03:24,600 --> 00:03:28,840 Speaker 1: been built around realized gains, so you know, you only 50 00:03:28,919 --> 00:03:31,760 Speaker 1: once you had the money in your actual pocket after selling. 51 00:03:31,880 --> 00:03:34,840 Speaker 1: So for example, you know, you buy property for say 52 00:03:34,880 --> 00:03:36,640 Speaker 1: four hundred thousand dollars, and then you go and sell it, 53 00:03:36,720 --> 00:03:39,440 Speaker 1: say five years later, for say six hundred thousand dollars, 54 00:03:39,920 --> 00:03:42,960 Speaker 1: you've technically made a two hundred thousand dollars capital gain 55 00:03:43,400 --> 00:03:46,920 Speaker 1: and you would only pay tax on that gain once 56 00:03:46,960 --> 00:03:49,080 Speaker 1: you have sold it. And you would pay tax on 57 00:03:49,160 --> 00:03:52,760 Speaker 1: that two hundred thousand dollars gain depending on your you know, 58 00:03:52,800 --> 00:03:54,920 Speaker 1: how long you'd held the asset for where it's held 59 00:03:54,960 --> 00:03:59,080 Speaker 1: and of course your marginal tax rate. Now, if this 60 00:03:59,200 --> 00:04:03,440 Speaker 1: is passed by Senate, this could actually completely change the 61 00:04:03,520 --> 00:04:06,560 Speaker 1: system because what it is is allowing for taxation to 62 00:04:06,600 --> 00:04:11,040 Speaker 1: be triggered on paper wealth, not real wealth. So even 63 00:04:11,080 --> 00:04:15,160 Speaker 1: though you haven't sold that asset, I'll use that example 64 00:04:15,160 --> 00:04:17,080 Speaker 1: again of that four hundred thousand dollars asset, even though 65 00:04:17,120 --> 00:04:19,440 Speaker 1: it isn't actually technically applicable because we're talking about three 66 00:04:19,440 --> 00:04:22,279 Speaker 1: million dollar bounces here. But in that example I just used. 67 00:04:22,960 --> 00:04:25,880 Speaker 1: What this is saying is, well, guess that property you 68 00:04:25,920 --> 00:04:27,839 Speaker 1: bought for four hundred thousand is now worth six hundred 69 00:04:27,839 --> 00:04:29,520 Speaker 1: thousand dollars. Even though you haven't sold it, We're going 70 00:04:29,560 --> 00:04:33,920 Speaker 1: to tax you anyway. So this is the frustrating part. 71 00:04:34,080 --> 00:04:37,919 Speaker 1: You are still expected to pay some tax because of 72 00:04:37,960 --> 00:04:43,800 Speaker 1: the perceived value. Now, if this is past and it's 73 00:04:43,839 --> 00:04:47,679 Speaker 1: put into place, it could spread to investment properties outside 74 00:04:47,680 --> 00:04:53,159 Speaker 1: of super It could include business assets, share portfolios, potentially 75 00:04:53,360 --> 00:04:57,119 Speaker 1: the family home. This is a slippery slope, you see. 76 00:04:57,200 --> 00:05:01,760 Speaker 1: Once this mechanism exists, the future governments can expand it. 77 00:05:02,320 --> 00:05:05,359 Speaker 1: So it's think of it as like winning the lottery, 78 00:05:05,640 --> 00:05:08,719 Speaker 1: or being taxed on winnings for the lottery before you 79 00:05:08,760 --> 00:05:12,440 Speaker 1: actual numbers have been drawn. This is not a wealth tax, 80 00:05:12,640 --> 00:05:14,640 Speaker 1: it's a fear tax. And at the end of the day, 81 00:05:15,040 --> 00:05:18,520 Speaker 1: does this tax actually encourage us to work hard, contribute 82 00:05:18,520 --> 00:05:21,679 Speaker 1: to our super and actually feel empowered about our financial future. 83 00:05:22,040 --> 00:05:26,360 Speaker 1: Hell no, it certainly doesn't. And this is seriously destructive, 84 00:05:26,880 --> 00:05:30,280 Speaker 1: dangerous and a huge concern for so many people within 85 00:05:30,400 --> 00:05:34,880 Speaker 1: my industry as well as everyday Australians. So let's go 86 00:05:34,920 --> 00:05:37,400 Speaker 1: and talk about the impact it has on self managed 87 00:05:37,440 --> 00:05:40,760 Speaker 1: super funds, which I see is the biggest worry. Now, 88 00:05:40,960 --> 00:05:44,560 Speaker 1: a lot of self managed super funds hold illiquid assets 89 00:05:45,000 --> 00:05:46,760 Speaker 1: and that was probably one of the main reasons why 90 00:05:46,760 --> 00:05:48,640 Speaker 1: they used a self managed super fund because of that, 91 00:05:48,800 --> 00:05:52,000 Speaker 1: you know, flexibility, and they're you know things like property, 92 00:05:52,520 --> 00:05:57,200 Speaker 1: business premises, like commercial property, private equities, you know, including startups. 93 00:05:57,279 --> 00:06:00,200 Speaker 1: And then farmers. There are a lot of farmers who 94 00:06:00,240 --> 00:06:04,120 Speaker 1: actually own their farms within a self managed superfund. Now, 95 00:06:04,320 --> 00:06:09,240 Speaker 1: these types of assets cannot actually be sold easily to 96 00:06:09,279 --> 00:06:13,159 Speaker 1: go and pay those tax bills. What this could mean 97 00:06:13,279 --> 00:06:16,520 Speaker 1: is if this is past and a farmer gets hit 98 00:06:16,560 --> 00:06:19,160 Speaker 1: with a bill and the farmer is a trustee of 99 00:06:19,200 --> 00:06:21,400 Speaker 1: the self managed super fund, they could be forced to 100 00:06:21,440 --> 00:06:25,599 Speaker 1: sell that entire farm to cover that tax bill for 101 00:06:25,680 --> 00:06:31,239 Speaker 1: that year on a gain that they haven't actually received. Now, 102 00:06:31,440 --> 00:06:33,320 Speaker 1: this is another problem that comes on this. There's a 103 00:06:33,440 --> 00:06:37,840 Speaker 1: huge administration nightmare. How are we going to actually understand 104 00:06:37,920 --> 00:06:41,200 Speaker 1: the valuations? This is really difficult. How do you value 105 00:06:41,200 --> 00:06:44,680 Speaker 1: a farm? You know? How do you value a startup, 106 00:06:44,800 --> 00:06:47,280 Speaker 1: particularly you know where it is in its journey and 107 00:06:47,320 --> 00:06:49,680 Speaker 1: the risks it's taken and the debt and so forth. 108 00:06:49,720 --> 00:06:53,200 Speaker 1: This is really difficult, and this is also incredibly expensive. 109 00:06:53,800 --> 00:06:57,080 Speaker 1: You would really need to get a highly skilled accountant 110 00:06:57,120 --> 00:06:59,960 Speaker 1: with a really niche you know, expertise to be able 111 00:06:59,960 --> 00:07:04,520 Speaker 1: to do that would be incredibly expensive and also incredibly inconsistent. 112 00:07:04,960 --> 00:07:06,960 Speaker 1: How can you actually know the true value of an 113 00:07:07,000 --> 00:07:10,560 Speaker 1: asset if it isn't actually being sold. There's no one 114 00:07:10,600 --> 00:07:13,040 Speaker 1: actually says they're saying, I'll give you four million dollars 115 00:07:13,080 --> 00:07:14,720 Speaker 1: for that, or three million dollars that or nine million 116 00:07:14,760 --> 00:07:17,960 Speaker 1: dollars for that. Like, how do we understand the true value? 117 00:07:18,000 --> 00:07:19,760 Speaker 1: Like what is the formula that we're going to be 118 00:07:19,760 --> 00:07:22,800 Speaker 1: able to use here? And the other big issue, which 119 00:07:22,840 --> 00:07:26,080 Speaker 1: is particularly around startups, which a lot of you know, 120 00:07:26,160 --> 00:07:30,400 Speaker 1: the big superannuation funds actually have exposure to, is the 121 00:07:30,520 --> 00:07:35,280 Speaker 1: volatility You know, a business might be worth nothing when 122 00:07:35,320 --> 00:07:38,200 Speaker 1: it first starts up, but it hits gold, you know, 123 00:07:38,240 --> 00:07:42,040 Speaker 1: particularly maybe technology put a huge amount of money into it, 124 00:07:42,040 --> 00:07:43,520 Speaker 1: and then all of a sudden it's gone for being 125 00:07:43,520 --> 00:07:46,920 Speaker 1: worth nothing to say, thirty forty million dollars. That's how 126 00:07:47,080 --> 00:07:50,080 Speaker 1: the volatility can exist for a lot of these, you know, 127 00:07:50,280 --> 00:07:53,920 Speaker 1: venture capitalists. So how are we going to cope with that? 128 00:07:54,000 --> 00:07:57,080 Speaker 1: Does that mean the whole business gets sold? You know, 129 00:07:57,200 --> 00:08:01,600 Speaker 1: you imagine owning a residential investment inside a self managed 130 00:08:01,640 --> 00:08:04,320 Speaker 1: super fund that you set up and it increases in 131 00:08:04,400 --> 00:08:07,679 Speaker 1: value due to inflation, and that just tips you over 132 00:08:08,040 --> 00:08:11,160 Speaker 1: that three million dollar threshold, but you don't want to 133 00:08:11,200 --> 00:08:14,960 Speaker 1: sell it. But you've still receiving a massive tax bill, 134 00:08:15,520 --> 00:08:17,560 Speaker 1: and then you don't actually have the cash within your 135 00:08:17,600 --> 00:08:21,120 Speaker 1: super to actually fund that annual tax bill. So what 136 00:08:21,160 --> 00:08:22,960 Speaker 1: does that mean? Well, you don't have the cash to 137 00:08:22,960 --> 00:08:25,760 Speaker 1: pay the tax bill. You're over the three million dollar threshold. 138 00:08:26,000 --> 00:08:28,600 Speaker 1: You're going to have to sell that entire property. Now 139 00:08:29,720 --> 00:08:32,160 Speaker 1: what are you going to do? You can't sell the 140 00:08:32,200 --> 00:08:35,920 Speaker 1: front door, the bedroom, the backyard. You're going to have 141 00:08:35,960 --> 00:08:39,880 Speaker 1: to sell that entire property, which then triggers additional fees 142 00:08:39,920 --> 00:08:44,640 Speaker 1: and expenses like agents, commissions, marketing expenses, legal and so on. 143 00:08:45,120 --> 00:08:48,040 Speaker 1: And now your property you work so hard for in 144 00:08:48,080 --> 00:08:50,640 Speaker 1: your self manister fund, you're out of the market. You've 145 00:08:50,640 --> 00:08:56,120 Speaker 1: completely changed the investment strategy thanks to this tax. Now 146 00:08:56,679 --> 00:09:00,160 Speaker 1: this problem continues on. It doesn't just stop there. It's 147 00:09:00,160 --> 00:09:04,280 Speaker 1: actually potentially going to destroy the investment cycle. You see 148 00:09:04,400 --> 00:09:08,240 Speaker 1: a lot of investors actually leverage growth to reinvest, you know, 149 00:09:08,320 --> 00:09:13,800 Speaker 1: equity in property or shares, and taxing before it actually 150 00:09:13,800 --> 00:09:18,720 Speaker 1: has been realized completely destroys this strategy. It completely pedalizes 151 00:09:19,440 --> 00:09:23,600 Speaker 1: that strategic, long term thinking and planning when it comes 152 00:09:23,640 --> 00:09:29,160 Speaker 1: to wealth accumulation, and it also encourages this knee jerk 153 00:09:29,400 --> 00:09:35,680 Speaker 1: short term terminism and liquid assets doesn't actually uphold long 154 00:09:35,800 --> 00:09:42,360 Speaker 1: term financial stability, security and independence, which is really concerning. 155 00:09:43,360 --> 00:09:45,240 Speaker 1: The other thing we need to think about is this 156 00:09:45,400 --> 00:09:49,720 Speaker 1: three million dollar figure is not indexed, and there doesn't 157 00:09:49,720 --> 00:09:55,200 Speaker 1: seem to be much agreement around considering indexing it. Now. 158 00:09:55,679 --> 00:09:58,280 Speaker 1: Three million dollars, yes, it is. It is a lot 159 00:09:58,320 --> 00:10:00,800 Speaker 1: of money to happen superineuration. And you know, if you've 160 00:10:00,840 --> 00:10:03,560 Speaker 1: got three million dollars in super you've worked hard, you've 161 00:10:03,559 --> 00:10:07,400 Speaker 1: done well, You've made some great decisions. Now, if this 162 00:10:07,480 --> 00:10:10,520 Speaker 1: stays in place and is not indexed over the next 163 00:10:10,559 --> 00:10:14,200 Speaker 1: twenty thirty years, more and more of us will actually 164 00:10:14,200 --> 00:10:16,120 Speaker 1: have three million dollars SUPER. And if you ever played 165 00:10:16,120 --> 00:10:19,240 Speaker 1: around with my superannuation calculators on my website, you'll see 166 00:10:19,240 --> 00:10:23,720 Speaker 1: that a three million dollars superannuation account balance isn't unfathomable. 167 00:10:24,040 --> 00:10:28,160 Speaker 1: Hard work, dedication, commitment, you could have a three million 168 00:10:28,200 --> 00:10:31,840 Speaker 1: dollars in SUPER and then new factor in things like inflation, 169 00:10:32,880 --> 00:10:38,040 Speaker 1: compounding returns, regular contributions. You're SUPER guarantee, which is now 170 00:10:38,120 --> 00:10:40,560 Speaker 1: up to approaching twelve percent. From the first of July. 171 00:10:41,400 --> 00:10:44,320 Speaker 1: More and more people are going to hit this threshold, 172 00:10:44,520 --> 00:10:49,199 Speaker 1: which includes younger investors, younger investors who have made brilliant 173 00:10:49,280 --> 00:10:52,920 Speaker 1: smart investment decisions. You could hit that three million dollars fast, 174 00:10:52,920 --> 00:10:56,360 Speaker 1: sooner than you realize. And then what about women, Women 175 00:10:56,400 --> 00:10:59,360 Speaker 1: who have previously been impacted by Super working so hard 176 00:10:59,360 --> 00:11:03,520 Speaker 1: to now build up they're Super consistently contributing investing, making 177 00:11:03,559 --> 00:11:06,400 Speaker 1: great decisions, getting quality advice. They can also be caught 178 00:11:06,440 --> 00:11:09,000 Speaker 1: up on this. Imagine that you work so hard to 179 00:11:09,200 --> 00:11:12,559 Speaker 1: get your SUPER back on track and then you get penalized. 180 00:11:13,160 --> 00:11:19,040 Speaker 1: This disproportionately impacts responsible investors like you and me, and 181 00:11:19,080 --> 00:11:23,680 Speaker 1: it is so fucking messed up. Now, the AMP Deputy 182 00:11:23,800 --> 00:11:28,160 Speaker 1: Chief Economist, Diana Mussina, she did some modeling and she 183 00:11:28,200 --> 00:11:30,520 Speaker 1: actually showed that the average twenty two year old is 184 00:11:30,559 --> 00:11:33,640 Speaker 1: actually going to be hit by this exact tax by 185 00:11:33,679 --> 00:11:35,840 Speaker 1: the time they go to retire. So if you're thinking 186 00:11:36,440 --> 00:11:38,040 Speaker 1: this is not going to be something your kids need 187 00:11:38,080 --> 00:11:43,319 Speaker 1: to worry about, grandkids or even like you, you are 188 00:11:43,480 --> 00:11:45,760 Speaker 1: so wrong. We've all got to wake up and put 189 00:11:45,840 --> 00:11:47,360 Speaker 1: our hands up in the air and jump up and 190 00:11:47,400 --> 00:11:51,520 Speaker 1: down so this doesn't actually get past. There's also the 191 00:11:51,640 --> 00:11:56,320 Speaker 1: psychological damage here and being the impact on our confidence 192 00:11:56,400 --> 00:11:59,920 Speaker 1: and our fucking trust in superannuation. And I'm sorry just 193 00:12:00,040 --> 00:12:03,160 Speaker 1: where but this is just disgraceful. I feel like this 194 00:12:03,200 --> 00:12:07,640 Speaker 1: is like daylight robbery that's happening right now. So superannuation 195 00:12:08,000 --> 00:12:11,440 Speaker 1: was designed to be predictable, it was designed to be 196 00:12:11,600 --> 00:12:13,560 Speaker 1: for the long term, and it was also designed to 197 00:12:13,600 --> 00:12:17,640 Speaker 1: be fair. There's also the obvious this was designed to 198 00:12:17,679 --> 00:12:21,280 Speaker 1: actually make people be financially independent, not rely on the government, 199 00:12:21,360 --> 00:12:25,840 Speaker 1: so destroying people's superinnuation seems completely counterintuitive. But anyway, all right, 200 00:12:25,880 --> 00:12:30,120 Speaker 1: I digress. So superinheration back when it was created in 201 00:12:30,160 --> 00:12:32,680 Speaker 1: the early nineties was designed to empower people like you 202 00:12:32,720 --> 00:12:35,280 Speaker 1: and I to create our own financial dependence and today 203 00:12:35,440 --> 00:12:38,440 Speaker 1: control of our money because we can pick where that 204 00:12:38,480 --> 00:12:44,080 Speaker 1: money is invested. This rule change mid game makes me 205 00:12:44,679 --> 00:12:49,520 Speaker 1: and I think everyone else feel unsafe. It feels erratic, 206 00:12:49,600 --> 00:12:54,439 Speaker 1: and it feels cruel. It's like a fucking punishment. Australians 207 00:12:54,559 --> 00:12:58,280 Speaker 1: may react in a really negative way, and that is 208 00:12:58,320 --> 00:13:00,960 Speaker 1: pull their money out of superannuation if they can, which 209 00:13:01,000 --> 00:13:05,040 Speaker 1: could weaken the entire system. They could pull money out 210 00:13:05,040 --> 00:13:07,600 Speaker 1: of property, money out of the share market, money out 211 00:13:07,600 --> 00:13:11,760 Speaker 1: of the Australian economy, the economy, our economy, and that 212 00:13:11,800 --> 00:13:15,960 Speaker 1: would then impact our productivity and growth. And to be honest, 213 00:13:16,400 --> 00:13:18,440 Speaker 1: if you're one of these people that's thinking, yeah, that's 214 00:13:18,480 --> 00:13:20,960 Speaker 1: what I was thinking of doing, Canna, I don't blame 215 00:13:21,040 --> 00:13:24,080 Speaker 1: you for thinking like that. It's not what I'm obviously recommending, 216 00:13:24,160 --> 00:13:26,840 Speaker 1: but you start to think, well, okay, what should I 217 00:13:26,880 --> 00:13:30,720 Speaker 1: be doing elsewhere? Because I definitely don't want to remintain 218 00:13:30,800 --> 00:13:34,040 Speaker 1: this commitment to my sexy superinnovation because it's certainly not 219 00:13:34,120 --> 00:13:37,080 Speaker 1: looking as sexy anymore. If this does get past. So 220 00:13:37,440 --> 00:13:42,440 Speaker 1: if people stop trusting the rules, they start looking for 221 00:13:42,520 --> 00:13:46,960 Speaker 1: ways outside of the system. Money will go offshore, people 222 00:13:47,000 --> 00:13:51,240 Speaker 1: will start utilizing family trusts and private lending. The damage 223 00:13:51,280 --> 00:13:54,760 Speaker 1: done to our economy could be irrepairable or because of 224 00:13:54,800 --> 00:14:01,319 Speaker 1: this one stupid change in rules is a little bit 225 00:14:01,440 --> 00:14:05,240 Speaker 1: like a marriage between you and your retirement. If you 226 00:14:05,440 --> 00:14:08,680 Speaker 1: keep changing the rules, you start to wonder whether it's 227 00:14:08,720 --> 00:14:12,840 Speaker 1: worth actually staying in the relationship anymore. And as angry 228 00:14:12,880 --> 00:14:16,720 Speaker 1: as I am, I don't want anyone's eyes wondering. Because 229 00:14:16,840 --> 00:14:19,600 Speaker 1: under the current system as it is today, without this 230 00:14:19,680 --> 00:14:23,680 Speaker 1: stupid rule in place, superannuation is still sexy. It helps 231 00:14:23,720 --> 00:14:27,400 Speaker 1: create financial stability. It also takes away temptation to go 232 00:14:27,440 --> 00:14:29,160 Speaker 1: and blow that money and spend that money when it's 233 00:14:29,200 --> 00:14:33,320 Speaker 1: for our long term financial security, freedom and independence. So 234 00:14:33,760 --> 00:14:35,920 Speaker 1: why would we want to go and mess with it? 235 00:14:36,480 --> 00:14:39,600 Speaker 1: Especially when our system, our superannuation system that is is 236 00:14:39,640 --> 00:14:41,480 Speaker 1: known as being one of the best in the world. 237 00:14:41,520 --> 00:14:44,280 Speaker 1: It is really admired, respected and there are a lot 238 00:14:44,280 --> 00:14:46,840 Speaker 1: of other countries really looking into what we do and 239 00:14:46,880 --> 00:14:49,800 Speaker 1: seeing how they can incorporate it in their own country. 240 00:14:50,480 --> 00:14:53,320 Speaker 1: So let's keep moving on this, because whilst I like 241 00:14:53,360 --> 00:14:54,920 Speaker 1: to talk about the problem. I also like to talk 242 00:14:54,920 --> 00:15:00,680 Speaker 1: about solutions, ideas and strategies. So what can we do? Obviously, 243 00:15:00,920 --> 00:15:03,680 Speaker 1: Number one, we've got to stay informed. This policy is 244 00:15:03,720 --> 00:15:08,400 Speaker 1: still a proposal, it's not actually more yet. You've got 245 00:15:08,440 --> 00:15:11,000 Speaker 1: to go and talk to your financial planner and your 246 00:15:11,040 --> 00:15:15,840 Speaker 1: accountant sooner rather than later, talking to them about super splitting. 247 00:15:16,080 --> 00:15:18,600 Speaker 1: Is this something that you can do? You know, depending 248 00:15:18,640 --> 00:15:21,160 Speaker 1: on how many members you've got and obviously how much money, 249 00:15:21,160 --> 00:15:26,160 Speaker 1: and if your partner is in your superannuation. Looking at valuations, 250 00:15:26,200 --> 00:15:31,720 Speaker 1: self managed superfunded valuations, looking at liquidity strategies, particularly, you know, 251 00:15:31,880 --> 00:15:34,520 Speaker 1: looking at making sure that you've got cash and perhaps 252 00:15:34,600 --> 00:15:37,320 Speaker 1: the strategy now changes so that you're not making new investments, 253 00:15:37,320 --> 00:15:40,480 Speaker 1: you're perhaps piling up cash and letting it sit in 254 00:15:40,520 --> 00:15:44,480 Speaker 1: the self mattered super fund. Also looking about tax planning, 255 00:15:45,000 --> 00:15:48,840 Speaker 1: looking at potentially shares Australian shares with franking credits that 256 00:15:48,880 --> 00:15:52,400 Speaker 1: can help reduce that tax. Or you know, if you 257 00:15:52,440 --> 00:15:55,760 Speaker 1: are over preservation age, which promotivus is around about sixty 258 00:15:55,880 --> 00:15:58,680 Speaker 1: or above, perhaps you need to look at taking some 259 00:15:58,760 --> 00:16:01,320 Speaker 1: money at a superannuation. But of course don't go and 260 00:16:01,360 --> 00:16:05,840 Speaker 1: do that without professional and formal advice from your accountant 261 00:16:05,920 --> 00:16:09,520 Speaker 1: and your financial planner. You also may want to look 262 00:16:09,560 --> 00:16:11,840 Speaker 1: at maybe looking at some more liquid assets. If your 263 00:16:11,880 --> 00:16:15,000 Speaker 1: self managed super fund is predominantly filled up with property 264 00:16:15,240 --> 00:16:18,640 Speaker 1: like commercial property or residential property that's not liquid, perhaps 265 00:16:18,720 --> 00:16:21,600 Speaker 1: you need to start including other assets that you can 266 00:16:21,640 --> 00:16:24,040 Speaker 1: actually sell one hundred thousand dollars worth or ten thousand 267 00:16:24,080 --> 00:16:26,720 Speaker 1: dollars worth, or you know whatever you need to potentially 268 00:16:26,720 --> 00:16:28,600 Speaker 1: fund these things that you're not ever backed into a 269 00:16:28,600 --> 00:16:31,360 Speaker 1: situation where we have to sell the whole entire property. 270 00:16:31,880 --> 00:16:33,440 Speaker 1: The other thing you want to be talking about, your 271 00:16:33,440 --> 00:16:36,920 Speaker 1: financial planner, where is looking at assets for your investment 272 00:16:36,960 --> 00:16:40,640 Speaker 1: strategy or retirement strategy that are perhaps less volatile, so 273 00:16:40,640 --> 00:16:43,080 Speaker 1: that you don't need to worry about a spike in 274 00:16:43,200 --> 00:16:47,400 Speaker 1: volatility where it pushes you over temporarily over that three 275 00:16:47,440 --> 00:16:51,360 Speaker 1: million dollar threshold triggering this tax for you. Perhaps you 276 00:16:51,400 --> 00:16:56,640 Speaker 1: need to look at more boring, stable, less volatile and investments. 277 00:16:56,680 --> 00:17:01,000 Speaker 1: Perhaps this really is important to you. Know, it pays 278 00:17:01,040 --> 00:17:04,040 Speaker 1: to be prepared, and you know this is not a 279 00:17:04,080 --> 00:17:06,960 Speaker 1: time to panic, but it's certainly not a time to 280 00:17:07,000 --> 00:17:11,400 Speaker 1: stay silent because this is grossly unfair to all of us. 281 00:17:12,119 --> 00:17:14,119 Speaker 1: So you know, you pick up the phone, write a 282 00:17:14,200 --> 00:17:17,720 Speaker 1: letter to your MP. Policies like this shouldn't ever be rushed, 283 00:17:17,720 --> 00:17:20,320 Speaker 1: and I feel like this is being rushed through at 284 00:17:20,320 --> 00:17:25,240 Speaker 1: a disturbing, concerning rate. So as I wrap up today's episode, 285 00:17:25,240 --> 00:17:27,480 Speaker 1: and I think I have literally like spattal over my 286 00:17:27,520 --> 00:17:30,280 Speaker 1: mirancrophone because I got in so passionate about this. You know, 287 00:17:30,359 --> 00:17:34,119 Speaker 1: whether your superbalance is thirty thousand dollars or three million dollars, 288 00:17:34,320 --> 00:17:38,600 Speaker 1: this proposed change should really concern you. This may look 289 00:17:38,640 --> 00:17:41,879 Speaker 1: like a rich person's problem, but if it is past, 290 00:17:42,440 --> 00:17:46,320 Speaker 1: it is going to eventually impact all of us. Furthermore, 291 00:17:46,640 --> 00:17:49,560 Speaker 1: this isn't just about tax It's about changing the rules 292 00:17:49,560 --> 00:17:52,920 Speaker 1: of the game, shifting the burden and punishing the very 293 00:17:52,960 --> 00:17:57,640 Speaker 1: behaviors that we're actually trying to encourage, like long term planning, 294 00:17:58,000 --> 00:18:02,280 Speaker 1: financial independence, growing your future wealth responsibly so that we 295 00:18:02,359 --> 00:18:05,720 Speaker 1: don't end up on the government demanding an age pension 296 00:18:05,880 --> 00:18:08,879 Speaker 1: every single year. So I'm sorry if I've gotten a 297 00:18:08,880 --> 00:18:10,959 Speaker 1: little bit passionate. I'm sorry if I've offended you with 298 00:18:11,000 --> 00:18:14,320 Speaker 1: my swearing. I promise you I wasn't trying to scare you, 299 00:18:14,480 --> 00:18:16,560 Speaker 1: but I want to empower you. I want to help 300 00:18:16,600 --> 00:18:20,040 Speaker 1: you understand what is happening and why your voice and 301 00:18:20,080 --> 00:18:24,560 Speaker 1: your plan matters more than ever before. I don't want 302 00:18:24,600 --> 00:18:26,680 Speaker 1: you to wake up one day go gosh, what's this tax? 303 00:18:26,720 --> 00:18:28,560 Speaker 1: Why am I now being asked to pay this tax? 304 00:18:28,640 --> 00:18:31,200 Speaker 1: What's this all about? And think why didn't Cano ever 305 00:18:31,240 --> 00:18:33,560 Speaker 1: tell me about this? Well I am. I'm telling you 306 00:18:33,640 --> 00:18:36,040 Speaker 1: right now so that we can do something and hopefully 307 00:18:36,040 --> 00:18:39,320 Speaker 1: get it shut down for good. Now, if you are 308 00:18:39,600 --> 00:18:42,120 Speaker 1: one of those very fortunate people who does have three 309 00:18:42,119 --> 00:18:45,720 Speaker 1: million dollars or more in super can, I strongly recommend 310 00:18:45,840 --> 00:18:50,399 Speaker 1: getting advice, not advice from influencer or from listening to 311 00:18:50,400 --> 00:18:53,160 Speaker 1: a podcast like this or reading a blog post, go 312 00:18:53,200 --> 00:18:58,359 Speaker 1: and get personal advice professional advice from your accountant and 313 00:18:58,400 --> 00:19:02,200 Speaker 1: your financial planner as soon as possible. Whilst this may 314 00:19:02,400 --> 00:19:05,520 Speaker 1: not necessarily be passed, it may be delayed for a 315 00:19:05,560 --> 00:19:07,560 Speaker 1: little bit in past, say in six months time or 316 00:19:07,600 --> 00:19:11,720 Speaker 1: a year's time, it is still worth getting proactive advice 317 00:19:12,320 --> 00:19:16,359 Speaker 1: so that you can make any recommended changes smoothly while 318 00:19:16,359 --> 00:19:19,520 Speaker 1: being completely informed and knowing what is best for you 319 00:19:19,960 --> 00:19:22,320 Speaker 1: and your goals, and of course all the costs and 320 00:19:22,480 --> 00:19:27,000 Speaker 1: risks involved. So all right, let's keep the pressure for 321 00:19:27,080 --> 00:19:31,280 Speaker 1: as smart, successful superanneration policy as it should be, and 322 00:19:31,359 --> 00:19:35,240 Speaker 1: as well, continue to invest with purpose, keep an iron 323 00:19:35,280 --> 00:19:39,160 Speaker 1: our economy and what's right for everyone, and support productivity 324 00:19:39,359 --> 00:19:43,440 Speaker 1: and innovation in this country. Now as always, as a 325 00:19:43,480 --> 00:19:47,919 Speaker 1: wrap up today's episode, keep that financial fire burning right within. 326 00:19:48,520 --> 00:20:02,560 Speaker 1: This is Sugar Mamma's fireplay.