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More Budget Changes

Discussion in 'Accounting, Tax & Legal' started by lauries, 1st Jun, 2008.

  1. lauries

    lauries Member

    Joined:
    9th Jun, 2006
    Posts:
    12
    Location:
    Brisbane, Qld
    Just reading through the most recent Vanguard email and I noticed this:

    "One of the key changes in the recent federal budget was that an interest rate deduction when you borrow to invest via a margin loan or other structured finance product will be pegged at 9.45%. While that has not received a lot of media attention it is quite a bit lower than prevailing rates on some of the products in the marketplace - typically around 12% to 14% - so investors and advisers will need to do their sums to see if the investment still stacks up given the tax deduction may be significantly lower."

    June | a tempting month for tax | Vanguard news | Vanguard
    _id=si

    This is an interesting development in a rising interest rate environment!

    Does anyone have any further details on this?
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Lauries,

    Just that the protected equity product people aren't worried.

    Good article, I like the explanation about income vs growth, very good.

    Cheers,

    Dan
     
  3. gazza

    gazza Well-Known Member

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    Location:
    Canberra
    This is news to me to.

    Nick M or any other accountants on the forum, could you please explain in a little more detail ?
     
  4. DaveA

    DaveA Well-Known Member

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    Location:
    Sydney, NSW
    i thought it was only capital protected investments, and not margin loans...

    be a hell of alot of admin work if its both
     
  5. gazza

    gazza Well-Known Member

    Joined:
    15th Aug, 2005
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    Location:
    Canberra
    DaveA

    Having done a little research. I think you're correct. Capital protected loans not margin loans in general.

    Gazza