WBC/NAB (DFC)(Calculation)
// Notes //
As we prepare for the Budget Reform changes effective JUL27, we’re adjusting both our Super and taxable portfolios to reduce trading activity during periods of market volatility. Our focus shifts toward a DRIP (Dividend Reinvestment Plan), based income approach, with ETFs as the primary growth allocation, supported by a filling‑bucket strategy to manage and offset our cash reserves.
// Budget Reform JUL27 //
JUL27 start date activates the new CGT system.
From 1‑Jul‑2027 onward, affected assets:
No 50% long‑term discount, even if held >12 months.
All real capital gains taxed at 30% minimum CGT, regardless of your marginal tax rate.
Our HostPlus Super reporting remains inaccurate, so we continue to track all transactions ourselves. We use a DCA block‑lots method, whereas HostPlus appears to apply LIFO, resulting in incorrect CGT calculations on their statements. we’ve contacted their customer support multiple times, but the responses have been generic and unresolved.
For our taxable account, we lodge our own returns, which makes it straightforward to maintain block‑lot cost‑basis tracking when calculating CG/(L). Several of our previous accountants refused to use this method, relying instead on ATO pre‑fill or bank‑statement reconciliation and charging per line item entered. As a result, we now lodge our own returns and use AI‑assisted reconciliation.
Since the Budget Reform doesn’t affect Franking Credits, that remains our primary focus. We’ll continue allocating to ETFs for growth, and any realised gains from sells will be offset through our tax‑loss‑harvesting strategy to maintain CGT efficiency under the JUL27 rules. We also need to incorporate our Filling Bucket strategy to manage and deploy our cash reserves effectively.
