CGT backdown; Qantas long-haul plans delayed; Trump in no rush to do deal
News in brief
Brent crude has fallen back below $US100 a barrel on optimism of a deal between the US and Iran that would re-open the Strait of Hormuz. That helped the local sharemarket close up 0.4 per cent yesterday to 8692 points. The Aussie dollar rallied against the greenback, to be heading back towards 72 US cents.
Qantas's long promised Project Sunrise flights – non-stop from Sydney and Melbourne, to London and New York - have been delayed yet again, after manufacturer Airbus said the new planes needed to make the 22-hour trip would not arrive at the end of the year, as planned.
AI has infiltrated many of our lives, from finding recipes to writing essays, but one area where people are yet to trust artificial intelligence is in the housing market.
The cost of a stamp is set to jump nine per cent to $1.85, as long as the competition watchdog gives the ok.
US President Donald Trump says he has instructed negotiators "not to rush into a deal" with Iran, after earlier suggesting an agreement was close. The deal under discussion reportedly involves a 60-day ceasefire extension, reopening the Strait of Hormuz and a plan for further negotiations over Iran's nuclear programme.
Fear-o-meter
David Bassanese, chief economist, Betashares
“The blowback from the Federal Government remained intense last week, with a number of potential “unintended consequences” emerging in light of the Government’s 11th hour decision to extend changes in capital gains taxation from residential property to all assets.
“The Government has signalled that it may tweak its policy to avoid an effective “death tax” arising from plans to tax certain trusts at a minimum 30 per cent. There are also signs it will carve out the technology/start-up sector from the onerous capital gains changes.
“Yet, this still leaves the reality that Australia will have one of the highest capital gains taxes on high-growth investments in the world – even while surrounded by countries such as New Zealand and Singapore that don’t tax capital gains at all! Plans to only carve out the tech sector will also enrage every small business start-up around the country, who still face the prospect of losing up to 47 per cent in tax on any business sale.”
Fear & Greed Q+A today
We are in the middle of one of the biggest intergenerational wealth transfers in history. Kaajal Prasad explains the common mistakes families make, and the secrets to good succession planning:
"Quite often, generations are quite disparate in their views. And really that’s because the incumbent generation is much more attached to the creation of the wealth — the blood, sweat and tears that it took to build it, protect it and preserve it.
What they haven’t generally done is taken a deliberate and intentional approach to bring the next generation along with them.
So you often have a patriarch and matriarch who built the business or the wealth, and the children have just kind of come along. They don’t know any different. Mum and dad are always working in the business and creating wealth.
And there’s an assumption both ways — parents to kids and kids to parents — about how the family operates, how decisions get made and how people work together. But those conversations are rarely explicit."
The federal government will introduce legislation enacting Labor’s changes to capital gains tax and negative gearing on Thursday. The tranche of legislation will include the $250 Working Australian Tax Offset, and the standard $1000 tax deduction option, wedging the Opposition who support the latter changes, but not the CGT and negative gearing alterations.
Prime Minister Anthony Albanese yesterday said there would then be a second tranche of legislation which would consider any carve-outs for start-ups. He emphasised that the exceptions were not just for tech companies, and the government would discuss potential changes with a range of small business organisations.
Greed-o-meter
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