Subject: Labor’s tax deal with the Greens will close a superannuation ‘loophole’. What is changing and who is affected?

⚡️ Highlights:

1. The government has passed changes to capital gains tax and negative gearing with support from the Greens, which included a ban on self-managed super funds (SMSFs) borrowing to invest in residential property.
2. SMSFs represent less than 1% of total residential property borrowing and less than 0.5% of new residential borrowing each year.
3. The new rules will only apply to new investments and will raise about $50m over the next four financial years.
4. The changes aim to make the super system safer, with inquiries suggesting that borrowing in super funds is risky.
5. Banning SMSFs from borrowing to invest in homes may have a marginal impact on making housing more affordable, as it could reduce demand and prevent unnecessary risk in the financial system.

✍️ Miko Pagaduan | Full Article

❤️ Sent with love,