The first thing many financial advisers will tell you is to make decisions based on the law of the day, not in anticipation of what might happen in the future. But if we are to believe the polls, there will be a change of government at the next federal election – maybe even sooner if the citizenship crisis deals a mortal blow – so investors need to be aware of what is coming down the pipeline.
Labor leader Bill Shorten has already announced a range of changes to trusts, superannuation and property taxes that will affect decision-making in personal finance. These will be accompanied by a top tax rate of 49.5 per cent and a $3000 cap on deductions for managing tax affairs.
All are pitched as equality measures designed to break down what Shorten describes as a two-class tax system. Those who travel in first class use complex structures, offshore havens, concessions, and sly advisers to minimise their tax bills, he says, while salary and wage earners are stuck in economy class.