Hello,
I’ve always leaned more toward growth investing but after Labor’s proposed CGT changes I’m seriously reconsidering whether a more dividend-focused portfolio makes more sense going forward in Australia.
It feels like the incentives are gradually shifting away from long-term capital growth and more toward generating cash flow now.
With Labor replacing the flat 50% CGT discount with the old CPI-indexation method and slapping a 30% minimum tax floor on capital gains, the math on long-term capital growth strategies has fundamentally changed as far as I can see.
I know dividend investing isn’t magically tax-free either, but at least the income is tangible and predictable rather than potentially getting hit by changing rules around asset appreciation over time.
Curious if anyone else is increasing allocation to dividend shares (or ETFs or LICs I guess)? Or am I over reacting??