1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
Preparing video
Key points:
Concern over capital gains tax and discretionary trust changes impacting long‑term investors Potential negative effects on young investors and retirees using shares and ETFs for wealth building Call for better government consultation and clearer communication on tax changes
The Australian Shareholders' Association warns the federal budget’s tax overhaul could undermine long‑term investment confidence, with particular concern over capital gains tax and discretionary trust changes. Rachel Waterhouse from Australian Shareholders' Association states the minimum 30% tax on discretionary trusts from 1 July 2028, alongside capital gains tax adjustments from 1 July 2027, may leave many investors paying more tax and confused about portfolio implications.
Waterhouse argues these measures risk discouraging young Australians using shares and ETFs to build deposits for a first home, as highlighted by ASX research showing rising youth participation in equities. She also flags possible unintended consequences for low‑income retirees and other long‑term investors, suggesting intergenerational equity goals may not be fully met. Clearer government communication, detailed examples and earlier engagement with investor groups are described as essential.
On markets, Waterhouse notes the sharp fall in Commonwealth Bank of Australia (ASX:CBA) shares and raises the possibility that tax changes could influence decisions around realising capital gains. She also points to potential impacts on employee equity schemes and CEO remuneration structures, and notes upcoming AGMs for defence group EOS (ASX:EOS) and DroneShield (ASX:DRO) as the association refines its voting guidelines.
