I’ve had many questions from readers seeking clarification to a response I gave last week in relation to a person who was inheriting shares.
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who → have → shares
There seems to be considerable confusion arising from conflicting commentary around the application of the minimum 30 per cent tax that will be introduced from next financial year.
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that → seem → year
This is the statement as published by Treasury on May 28, 2026: “In addition to indexation, a minimum tax rate of 30 per cent will apply to real capital gains accruing from July 1, 2027.”
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rate → publish → July
This statement makes it clear that the minimum 30 per cent tax does not apply to gains that accrued before the new rules take effect.
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rules → make → effect
It’s also worth highlighting that those receiving the age pension, even a small part pension, are specifically exempt from the 30 per cent minimum capital gains tax on gains accruing post 1 July 2027.
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those → ’ → July
In my response I mentioned that “it may be possible to sell small amounts each year and keep under the tax-free threshold.”
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it → mention → threshold
‘May be possible’ carries a significant load here and warrants further explanation.
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be → carry → explanation
This will depend on what the CBA share price does after July 1, 2027, and whether the person receives an age pension.
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person → depend → pension
For self-funded retirees, the minimum 30 per cent tax will apply on real gains that arise from 1 July 2027 onwards, no matter how small the value of shares sold.
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value → fund → shares
I’ve really appreciated the engagement from so many readers, so please, if you see something that you feel isn’t clear (or, heaven forbid, wrong!), do email and let me know.
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me → appreciate → email
I’m trying to work out if I can afford to retire next year.
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I → try → ?
I’m finding my conclusion changes considerably depending on how much I assume my spending will be in the future.
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spending → find → future
I’ve never worked to a budget, but I tried using an online calculator.
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I → work → calculator
The answer it came up with seems too low, so I must be missing things.
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I → come → things
I’ve found the figure of $56,000 a year mentioned online, but I don’t feel like I’m “average”.
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I → find → 56,000
Everyone who tries to work out what they currently spend via a budget app underestimates, so rest assured that you are running with the pack here.
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you → try → pack
We’ve found that reverse-engineering your current spending is the best starting point.
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engineering → find → spending
Then calculate how much your savings rose, or your debt reduced.
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debt → calculate → ?
Subtract this movement from the income, and the figure you get must be what you spent.
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you → subtract → what
As an example, let’s say you earned $100,000 in the past year after tax.
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you → let → tax
Your savings account increased by $20,000.
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account → increase → 20,000
The rest of your balance sheet was unchanged, other than market movements (super can be ignored here).
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super → ignore → movements
This would imply that you spent $80,000 in the past year.
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you → imply → year
With this as your starting point, you can now consider what your spending is likely to be once retired.
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spending → consider → point
Commute costs often decrease, but maybe (hopefully) you will spend more socialising.
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you → decrease → socialising
Often people will spend more money early in retirement, as they tick off some travel bucket list items.
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they → spend → items
We might build in an extra $20,000 per person for the first decade of retirement to cover this need.
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We → build → need
Research points to retirement spending following a “smile” pattern.
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Research → point → pattern
He hosts the Financial Autonomy podcast.
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He → host → podcast
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products.
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Advice → give → investing
They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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that → seek → decisions
Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday.
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tips → save → inbox
The Aporia
