The 2019 Federal Election certainly proved to be a surprise.
It seems the Coalition is headed for a majority in the House of Representatives. The Senate, whilst heading towards again being hung, may have enough independents to vote with the Coalition on most legislation. So Labor’s tax policies as presented for the 2019 Federal Election will never see the light of day.
This all proved to be a classic lesson in tax planning.
In my mind, there are three golden rules of tax planning:-
- Never assume legislation will be passed,
- Never assume legislated passed matches wat was proposed in the first place, and
- If you decide to go down a particular path, make sure the payoff is relatively quick.
I spoke with one fund manager late last week who noted that they were having incredibly high inflows into portfolios low on or without franking credits. I wonder how quickly those same investors may now pull out. Bu extension, I also wonder how cashed up the fund may stay to accommodate what could be an equally high level of withdrawals.
At MRS, we will spend today planning for your success.