The AFR reckons rentvesting is dead now that negative gearing has been wound back. Jack Henderson reckons the AFR has it backwards, and he's paying $3,700 a week in rent while he says it.

This one moves fast. Jack explains the valuation method most property investors have never heard of, where a property with two incomes on one title gets valued on its rent instead of on what the neighbours sold for, and walks through the duplex where that difference was worth more than a million dollars. He puts a number on what a dollar of rent is worth in value.

He gets specific about the off-the-plan settlements he thinks are about to go wrong, and the capital gains tax bill you can get on a property that never went up. And he ends with the single piece of research he tells every young investor to do before they touch anything.

Language warning. Jack talks the way Jack talks. This one isn't for the school run.

WHAT YOU'LL GET OUT OF IT

• Why rentvesting still works without negative gearing, and where it stops making sense

• The cap rate valuation method, and why it only applies to properties with multiple incomes on one title

• Jack's duplex, a $500k paper loss that became a gain by not subdividing

• What a dollar of rent is worth at a 5% cap rate versus a 3% cap rate

• The off-the-plan settlements about to land 20% under contract price

• Why depreciation can hand you a CGT bill on a property that didn't grow

• The only time Jack thinks you should buy brand new

• What he tells clients who are scared of prices falling further

• Why the tax narrative looks different once you know corporate tax was 49% in the 80s

• The question to ask the oldest person you know

CHAPTERS

00:10 Is rentvesting dead?
01:28 The rent increase Jack refused to pay
02:32 Has the YAM strategy changed since the budget?
03:52 The duplex: $5.25m, then $4.7m, then $6.5m
07:47 When valuers use a cap rate
08:20 What a dollar of rent is worth
08:52 The Paddington office at a 2.8% cap rate
10:06 Everyone's feeling battered. What now?
11:25 If you do nothing, will you get there?
12:21 Corporate tax was 49% in the 80s
14:56 Who actually pays the tax in Australia
15:43 Worried about valuations falling?
16:08 Off-the-plan carnage
17:22 The 5% deposit scheme and negative equity
19:19 The depreciation trap that creates a CGT bill
21:43 Will more finished properties come to market?
22:36 The only time to buy brand new
25:24 De-risking a falling market
26:13 Has the playbook changed?
28:09 So, for the AFR readers, is rentvesting dead?
28:46 Ask the oldest person you know
31:35 Buy a fast boat

GUEST LINKS
Jack Henderson, Henderson Advocacy: https://henderson.com.au/
Jack on Instagram: https://www.instagram.com/jackchenderson/

Smarter money moves start here.
Learn how to cut through the noise, avoid expensive mistakes, and get ahead faster.

FREE 7-DAY MONEY CHALLENGES
Pick one and see what changes in a week: https://pivotwealth.com.au/challenges/

WORK WITH US
Book a no-strings call: https://www.pivotwealth.com.au/booking
More about Pivot Wealth: https://www.pivotwealth.com.au

BEN'S BOOKS
Virgin Millionaire: https://amzn.to/3VFPPDM
Replace Your Salary by Investing: https://amzn.to/3J9Ta8g
Get Unstuck: https://amzn.to/3xo0MQG
All books: https://www.pivotwealth.com.au/books

FOLLOW
Instagram: https://www.instagram.com/pivotben
TikTok: https://www.tiktok.com/@bentalksmoney
YouTube: https://www.youtube.com/c/BenNashPivot
Facebook: https://www.facebook.com/pivotwealth/

DISCLAIMER
This podcast is for education only and doesn't take into account your personal circumstances. It's not financial advice. If you buy a financial product, read the PDS and TMD, and seek advice tailored to your situation. Ben Nash and Pivot Wealth are authorised representatives of Fish Tacos Pty Ltd, ABN 14 649 248 082, AFSL 533055.

On 12 May the budget killed the bucket company. A 30% minimum tax on trust income was the headline, but the real damage was underneath it, because that tax came with no credit when the money moved on to a company. Stack the two together and business owners were looking at an effective rate over 60% on profit they had already been taxed on once.

On 3 September the government released draft legislation that changes the picture, and Ben walks through exactly what it does. There is a window, it closes on 1 July 2028, and if you make a fixed election on your trust before then, the 30% minimum tax doesn't apply. The trade is that a discretionary trust stops being discretionary, forever.

Ben runs the numbers on a business making $400k a year and shows a gap of just under $2 million between two owners doing the same thing in different structures. He also covers the strategy the election kills, which is distributing to your adult kids. And he explains why who owns the shares in your bucket company now matters more than it ever has, with a 22-month window that just started.

WHAT YOU'LL GET OUT OF IT

• What a bucket company is and why business owners built their wealth around it

• How the budget got the effective tax rate on trust distributions above 60%

• What the 3 September draft legislation changes, and when it's expected to pass

• The fixed election, how it works, why it's permanent, and the two things that reset it

• A business making $400k a year, in a company versus personally, over 10 and 30 years

• Why distributing to adult children is now off the table

• Who should own the shares in your bucket company

• What happens to anyone who starts a business after 1 July 2028

• The sequence to follow before the window closes

CHAPTERS

00:06 Is the bucket company dead?
01:10 What a bucket company actually does
02:53 What the budget did on 12 May
05:00 The 3 September draft legislation
06:13 The election window closes 1 July 2028
08:15 A discretionary trust that isn't discretionary
10:30 Plan ten years out, not twelve months
11:35 If you start a business after July 2028
14:21 Ben paid himself nothing for three years
15:45 The numbers: $200k a year into a bucket company
18:33 The adult kids strategy is finished
20:44 Income versus distribution, and payroll tax
21:27 Who should own the bucket company
22:46 Stress test your accountant
23:23 The 22-month window
24:02 Stamp duty and why the states said no
25:57 The sequence to follow before the deadline
28:00 Don't die wondering
29:20 Wrap

Smarter money moves start here.
Learn how to cut through the noise, avoid expensive mistakes, and get ahead faster.

FREE 7-DAY MONEY CHALLENGES
Pick one and see what changes in a week: https://pivotwealth.com.au/challenges/

WORK WITH US
Book a no-strings call: https://www.pivotwealth.com.au/booking
More about Pivot Wealth: https://www.pivotwealth.com.au

BEN'S BOOKS
Virgin Millionaire: https://amzn.to/3VFPPDM
Replace Your Salary by Investing: https://amzn.to/3J9Ta8g
Get Unstuck: https://amzn.to/3xo0MQG
All books: https://www.pivotwealth.com.au/books

FOLLOW
Instagram: https://www.instagram.com/pivotben
TikTok: https://www.tiktok.com/@bentalksmoney
YouTube: https://www.youtube.com/c/BenNashPivot
Facebook: https://www.facebook.com/pivotwealth/

DISCLAIMER
This podcast is for education only and doesn't take into account your personal circumstances. It's not financial advice. If you buy a financial product, read the PDS and TMD, and seek advice tailored to your situation. Ben Nash and Pivot Wealth are authorised representatives of Fish Tacos Pty Ltd, ABN 14 649 248 082, AFSL 533055.

Every second call at the moment ends the same way. The budget has tightened the screws, the pay rise didn't move the needle, so what if we just moved to Singapore? Or Dubai. Or Hong Kong.

Ben and Siobhan ran the numbers, and the first thing they found is that Australia is a lower tax country than the UK, Canada, New Zealand and most of Europe. The catch is where we collect it. Almost 43% of every tax dollar in Australia comes from personal income, one of the heaviest reliances on personal income tax in the developed world, and that is exactly why it feels the way it does.

From there it gets practical. What you take home on $100k, $250k, $500k and $1 million in Sydney versus Singapore, Hong Kong and Dubai. What those countries charge you instead, from a 60% stamp duty on foreigners to private everything. How you actually get in.

The tax bill Australia hands you on the way out. And the two residency tests the ATO uses to decide whether you really left, because the people getting caught aren't the ones who moved, they're the ones who pretended to.

WHAT YOU'LL GET OUT OF IT

• Why Australia's total tax take is below the OECD average, and why it feels worse than that

• Take-home pay on $100k, $250k, $500k and $1m across Australia, Singapore, Hong Kong and Dubai

• Zero capital gains, zero on dividends and zero on interest, and what these countries charge instead

• The employment pass, the top talent pass and the golden visa, and what each one costs to qualify for

• Monaco, the Caribbean, Vanuatu and the other places that make the list

• The deemed disposal tax bill you pay when you leave, without selling anything

• Source tax versus residency tax, and why your Australian property still gets taxed

• The six-month test and the centre of vital economic interest

• Who relocating actually works for, and who ends up worse off

• The tax-smart moves available to you if you stay

CHAPTERS

00:07 Should you move to Singapore to save tax?
01:33 Australia is below the OECD average, with one big but
03:50 Why the pay rise stopped moving the needle
04:30 Singapore, Hong Kong and Dubai, why those three
05:46 Take-home pay on $100k, $250k, $500k and $1m
08:13 One year in Dubai equals five years here
09:22 Zero CGT, zero on dividends, zero on interest
10:09 Tax residency is the whole game
11:23 How these countries tax you instead
12:13 Getting in: employment passes, talent passes and golden visas
15:37 Monaco, the Caribbean and Vanuatu
19:21 The deemed disposal bill on the way out
20:20 Source tax versus residency tax
24:19 The six-month test and centre of vital economic interest
26:16 Line-ball residency cases
28:37 Who this actually works for
29:38 Is it worth six months away from your family?
30:36 The tax-smart moves if you stay
32:33 Wrap

Smarter money moves start here.
Learn how to cut through the noise, avoid expensive mistakes, and get ahead faster.

FREE 7-DAY MONEY CHALLENGES
Pick one and see what changes in a week: https://pivotwealth.com.au/challenges/

WORK WITH US
Book a no-strings call: https://www.pivotwealth.com.au/booking
More about Pivot Wealth: https://www.pivotwealth.com.au

BEN'S BOOKS
Virgin Millionaire: https://amzn.to/3VFPPDM
Replace Your Salary by Investing: https://amzn.to/3J9Ta8g
Get Unstuck: https://amzn.to/3xo0MQG
All books: https://www.pivotwealth.com.au/books

FOLLOW
Instagram: https://www.instagram.com/pivotben
TikTok: https://www.tiktok.com/@bentalksmoney
YouTube: https://www.youtube.com/c/BenNashPivot
Facebook: https://www.facebook.com/pivotwealth/

DISCLAIMER
This podcast is for education only and doesn't take into account your personal circumstances. It's not financial advice. If you buy a financial product, read the PDS and TMD, and seek advice tailored to your situation. Ben Nash and Pivot Wealth are authorised representatives of Fish Tacos Pty Ltd, ABN 14 649 248 082, AFSL 533055.