AVZ Discussion 2022

oxxa23 said:

Agree on thaz's notes here...

But, my wife just spends the money I make as a tax agent... have an accounting firm.

There's a lot of minimisation strategies... but, it's horses for courses and depends on everyone's own financial position and plans/goals


If a transaction involved a sale of shares there's still a small chance it could happen this year. Although more likely next year... if it involved the sale of the project, then a dividend would be next year, not this year... the company would likely give people more time before declaring a framed dividend I would think... and avz pay some tax first

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Winenut said:

Agree on the time horizon

Not necessarily expecting to have to deal with any major gain (if any) until the 2025/26 tax year (or beyond)

There's lots of great "pointers" and areas to explore that have been highlighted here but as @oxxa23 has rightfully pointed out everyone potentially has quite unique circumstances which affect how you may choose to deal with any gain event

Your age, who or what entity holds the shares, current balance of your super, other income (if any), whether you can crystalise any other share losses to offset CGT gains, how any deal is structured by AVZ and the other parties (entity sale/cash/scrip/dividend/trailing royalties) your domestic arrangements (single, spouse etc)

Certainly a minefied to navigate so best to get good, professional advice

This may be a once in a lifetime event......you don't want to fuck it up

I can't believe I did that winky thing.....

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Goldenboy said:

Ironic that all this tax money is going to be paid to the same bunch of c.——- that all rushed to our aid when we needed them most.

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Spikerama said:

The incumbent or ruling party does not get paid the tax money. They don't own it. It goes to the state. It is state funds. True they may decide how it gets allocated back to funding certain things for the population but that is the same for any tax you pay.

There's an election coming up. "Vote early and vote often!"

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tonster66 said:

LNP believed that Manono was in Australias national interest. LP has not lifted a finger to assist AVZ. Big difference

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Goldenboy said:

Ironic that all this tax money is going to be paid to the same bunch of c.——- that all rushed to our aid when we needed them most.

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Winenut said:

A tax deductible contribution to your super might be a good option too

In some circumstances I believe you can bring forward 3 years of contributions meaning you can contribute $300k in one year and claim it as a tax deduction

Pay 15% tax on the contribution to your super fund on the way in might be better than paying tax at higher marginal rates of 30%-37%-45% depending on how big your overall gains are

Later when in pension mode you can draw an income from your super fund tax free

But I'll leave the fancy tax talk to @TheCount .....I think he actually knows his fruit

EDIT: I think @Azzler was sort of touching on this same area......if that doesn't sound a bit too weird

EXTRA EDIT: I've apparently fked up on the tax deductibility thing....dammit

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RHyNO said:

Anyone else up for a mass taxation refusal! Unless of course they offer to pay us out in Monrero.

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Winenut said:

Agree on the time horizon

Not necessarily expecting to have to deal with any major gain (if any) until the 2025/26 tax year (or beyond)

There's lots of great "pointers" and areas to explore that have been highlighted here but as @oxxa23 has rightfully pointed out everyone potentially has quite unique circumstances which affect how you may choose to deal with any gain event

Your age, who or what entity holds the shares, current balance of your super, other income (if any), whether you can crystalise any other share losses to offset CGT gains, how any deal is structured by AVZ and the other parties (entity sale/cash/scrip/dividend/trailing royalties) your domestic arrangements (single, spouse etc)

Certainly a minefied to navigate so best to get good, professional advice

This may be a once in a lifetime event......you don't want to fuck it up

I can't believe I did that winky thing.....

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Spikerama said:

LNP or the FIRB?

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Goldenboy said:

Absolutely. ….never going to happen though . Sold 200k at the start of Jan 21 to put down the house deposit. Cap gain tax was around $140k …. Payment plan to ATO attracts a 9.5% interest charge compounding !!!!!! Good money if you can get it ….C——-s !!

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M.Bison said:

Yep, currently on a payment plan with the ATO for some AVZ shares sold around the $1.30 mark. Subsequently spent or reinvested most of the gains, expecting to be able to use more AVZ shares to pay tax when needed (I'm a dumbass). $1,000 a fortnight. Living the dream.

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M.Bison said:

Yep, currently on a payment plan with the ATO for some AVZ shares sold around the $1.30 mark. Subsequently spent or reinvested most of the gains, expecting to be able to use more AVZ shares to pay tax when needed (I'm a dumbass). $1,000 a fortnight. Living the dream.

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TheCount said:

Appreciate your vote of confidence @Winenut - I am late to the conversation and can't disagree with the 2x learned opinions of @Thaz and @oxxa23 ...

I suggest you all consider engaging a paid tax agent (not financial adviser) to work through the plan piece by piece. I do not do my own taxes any more. Go in with your plan. Talk about it. Review it. Ask 100 questions. Write it all down. If you want a big Super balance, "how do I get there?". Log onto MyGov and have a look at your own Unused Concessional Cap value. Strategies can take a few years to come to fruition, and after the experience with AVZ you should all have built up a decent "patience" tolerance.

Many of the "benefits" of pumping money into Super only come with money that has already had tax paid on it. Should AVZ provide that liquidity, then map out a timeline of how you can achieve your goal. Just remember that once you put your hard-earned into Super, you can't get it out until "retirement". Patience.

I chose to use an SMSF and a separate Company structure (not the Trustee) to split my holdings and in fact the Co has double the holding of the SMSF for future planning. For example, I can leave my current consulting employment and join the Countess as an employee of that Co until retirement. The timing of that only depends on the valuation and proceeds from the sale of our AVZ.

The Co is hit with (factored into my calcs) 25% tax on earnings/profits (no CGT discount) and depending on what eventually happens (ie: 2026 tax year) the after-tax funds can be kept in the Co or fed into the SMSF via salary sacrificing or other simple measures. From an estate planning perspective I can pass on the structure to the kids without the impending death duties. To protect the family home, loans etc are all done in the company name.

CGT in the SMSF is taxed at 10% of the gain which is very generous. Work hard to balance Member account balances.

Other items to consider in your plans? Clearing a mortgage, investment property, what does retirement look like? I've mentioned before about REIT's paying 8% tax-free.

For everyone running an SMSF, understand the conditions to get it into Pension mode, such as:
- pays a minimum each year.
- cannot grow the balance by contributions or rollovers
- cannot use the balance against borrowings (use a Co like above??)

The underlying principle that I use for any calculations is "what is the tax treatment of my decision?".

Lots to work on and think about and I have always believed that AVZ was "the one" to provide financial freedom. Not long now till we see how that turns out......... at $12, my shout..

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Juba1845 said:

Have to smile with all this chat about paying tax . The waves of despair then euphoria never ends . Need to see a deal first . Before June court date. Window is closing .

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