C.T. Harris & Company Chartered Accountants

4% per annum might win under the new tax rules.

Under CGT indexation, chasing 8% growth can mean a bigger taxable bite, while a steady 4% can come out ahead.

With negative gearing limited to new builds, yesterday’s cash flow maths won’t hold. This flips the playbook for investors, especially outside the capitals. Model both scenarios before you buy

👉 After-tax results beat brochure promises.

Save this before choosing your next investment property.

Redraw sounds helpful until the ATO asks why.

Spend $50k from your offset on a car or holiday? Your $500k investment loan balance doesn’t change, so deductions stay intact.

Park $100k in redraw, then pull $50k for personal use? ❌

The ATO traces the purpose, and that chunk becomes non‑deductible.
Want to invest? Use a new loan split and equity release, not redraw.

Save this before moving money between redraw and offset.

Control beats ownership because assets in your own name are the first to go when pressure shows up.

You feel safe with the house, the car, and the big salary. Then a dispute lands. A creditor calls. A breakup hits.

Suddenly, everything with your name on it is fair game. Cash flies out. You sell fast and pay more than you should. What looked strong on paper becomes a target.

Most owners wait until there’s a problem to build structure. They mix business and personal, and hope for the best. Don’t.

The issue is not forming entities for the sake of it. It is whether what you’ve built is protected and tax-smart before pressure hits.

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The lesson behind this is simple: reacting to tax headlines before you verify them with someone who actually knows will cost you options, time, and cash.

Big banners scream.
Trusts are dead.
30% death tax.
Panic hits.
Inboxes flood.
People freeze, or they lunge.

Both are expensive.
Rushed restructures.
Missed opportunities.
Get a clear picture on what the impact will be, then start taking the right steps.

Step back.

Ask what changed for your structure, not for the algorithm. Call a pro, get the facts, then decide. The issue is not the trust rules changing. It is whether you let clickbait make a permanent decision for a temporary headline.

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Tax-free money isn't tax-free. It's borrowed.

Division 7A feels like a clever move...until the interest and repayments start. That cash you pulled out? It comes back with interest, funded by wages or dividends already taxed to the hilt.

Smarter play: profits flow through the company, and then declare dividends as and when you require to meet your investment goals. Structure first, then extract.

Save this before your next drawdown.

The ATO took a local father to court. Scary headline, but the fine print decides outcomes.

Half a million in company tax feels personal. It isn’t always.

Some debts stay with the company. And payments aren’t random... old debts get cleared first. Miss that, and you can pay what you don’t owe. Document payments, open letters, and get advice early.

Save this for when pressure hits.

The lesson behind this is simple: if you want strong borrowing power, you need to show real profit and pay some tax... or the bank will shut the door.

Banks lend on what you can prove. Not what you tell your mates. Tiny taxable income looks clever. Until you need an equity release. Then the screen says no.

The deductions that saved dollars now cost you options.
Deals move on.
Windows close.
More waiting.
More pressure.

Run your numbers with the next loan in mind.
Ease off the extreme deductions before you apply.
Build a track record lenders trust.
The issue is not the tax bill.

It is whether the income you show keeps your borrowing window open when the deal shows up.

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