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Paul Benson<\/a>Money contributor<\/p>\nOctober 25, 2026 \u2014 5:01am<\/p>\n
October 25, 2026 \u2014 5:01am<\/p>\n
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Remove items from your saved list<\/a> to add more.<\/p>\n No gift articles left<\/p>\n You’ve used all of your gift articles. 3 more will become available on the 1st of every month.<\/p>\n Close<\/p>\n AAA<\/p>\n I\u2019ve had many questions from readers seeking clarification to a response I gave last week<\/a> in relation to a person who was inheriting 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.<\/p>\n This is the statement as published by Treasury<\/a> on May 28, 2026: \u201cIn addition to indexation, a minimum tax rate of 30 per cent will apply to real capital gains accruing from July 1, 2027.\u201d 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.<\/p>\n It\u2019s 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.<\/p>\n In my response I mentioned that \u201cit may be possible to sell small amounts each year and keep under the tax-free threshold.\u201d \u2018May be possible\u2019 carries a significant load here and warrants further explanation.<\/p>\n This will depend on what the CBA share price does after July 1, 2027, and whether the person receives an age 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.<\/p>\n I\u2019ve really appreciated the engagement from so many readers, so please, if you see something that you feel isn\u2019t clear (or, heaven forbid, wrong!), do email and let me know.<\/p>\n I\u2019m trying to work out if I can afford to retire next year. I\u2019m finding my conclusion changes considerably depending on how much I assume my spending will be in the future. I\u2019ve never worked to a budget, but I tried using an online calculator. The answer it came up with seems too low, so I must be missing things. I\u2019ve found the figure of $56,000 a year mentioned online, but I don\u2019t feel like I\u2019m \u201caverage\u201d. Any tips?<\/p>\n 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.<\/p>\n We\u2019ve found that reverse-engineering your current spending is the best starting point. Determine your after-tax income from the past year. Then calculate how much your savings rose, or your debt reduced. Subtract this movement from the income, and the figure you get must be what you spent.<\/p>\n As an example, let\u2019s say you earned $100,000 in the past year after tax. Your savings account increased by $20,000. The rest of your balance sheet was unchanged, other than market movements (super can be ignored here). This would imply that you spent $80,000 in the past year.<\/p>\n Related Article With this as your starting point, you can now consider what your spending is likely to be once retired. Commute costs often decrease, but maybe (hopefully) you will spend more socialising. Often people will spend more money early in retirement, as they tick off some travel bucket list items. We might build in an extra $20,000 per person for the first decade of retirement to cover this need.<\/p>\n Research points to retirement spending following a \u201csmile\u201d pattern. Higher at the beginning to cover fun things, and then higher at the end for care-related costs, with a lull in the middle. In your calculations, be sure to allow for inflation. Over a 20-year-plus retirement, inflation impact is significant.<\/p>\n Paul Benson is a Certified Financial Planner at Guidance Retirement Planning<\/a>. He hosts the Financial Autonomy podcast. Questions to: paul@financialautonomy.com.au<\/a><\/p>\n Advice given in this article is general in nature and is not intended to influence readers\u2019 decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.<\/p>\n Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n Remove items from your saved list<\/a> to add more.<\/p>\n No gift articles left<\/p>\n You’ve used all of your gift articles. 3 more will become available on the 1st of every month.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/dddabb61726a8979c02c2b9a9aa405d2ed77123d.jpeg\")
The specifics of the new tax laws appear to be confusing many.AFR<\/p>\n![\"Bank](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/1792947868_939_7b3f875d30aace58b69ebf24af92e5503b472202.jpeg\")
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