Barefoot Investor Scott Pape recently took a strong stand against Australians upset with the latest budget introduced by the Labor government.
Pape’s comments came in response to an irate email from a man named Brian, who criticized Labor, calling them ‘incompetent’ and accusing them of implementing a ‘massive tax grab’ aimed at high-income earners, investors, and small business owners.
Brian expressed his concern that Australia’s brightest young minds might consider moving to countries with lower taxes, such as New Zealand and Dubai.
“I’m just fed up with these incompetent people,” Brian said. “This budget is nothing but another major tax grab by Labor.”
He pointed out that people in the top 10% income bracket contribute to more than half of the tax revenue. “And now, Albo wants to act like a 47% silent partner in every small business across the nation.”
Brian questioned the motivation behind such policies, asking, “Why would anyone keep trying? Young adults saving for a house via index funds? Taxed. Family trusts providing for kids’ education? Taxed.”
‘Small business owners who’ve spent decades building something? Taxed at rates that would make your eyes water.’
But Pape said many of the fears circulating online were exaggerated or simply incorrect.
Barefoot Investor Scott Pape (pictured) has launched an extraordinary spray at Australians raging over Labor’s latest budget
Addressing young Australians worried about changes to capital gains tax, he said the greater risk was not paying slightly more tax, but suffering a market crash that wipes out a house deposit altogether.
‘Plenty of young people have written to me in a panic about the changes to capital gains tax. Many were planning to use their share portfolio as a house deposit. My view? The CGT change is not their biggest problem.’
He pointed to a hypothetical scenario where a $50,000 investment grows to $72,000 over five years, resulting in roughly $900 in additional tax under the new rules.
‘The real problem is the share market dropping 40 per cent and their $72,000 deposit becoming $43,000,’ he said.
‘Then it takes a decade to recover, while rents keep rising and they’re still at their parents’ place eating their Cheerios.
‘That’s why my rule has never changed: do not save for a house deposit in the share market.’
He also dismissed viral claims Labor would effectively become a ‘silent partner’ in small businesses through higher tax rates.
‘Brian’s “47 per cent silent partner” line was funny on social media the first 700 times,’ he wrote. ‘Now it’s just annoying. And it’s wrong.’
Pape was responding to a furious email from Brian, who blasted Anthony Albanese’s (pictured) Labor government ‘incompetent bastards’ launching a ‘giant tax grab’
Business owners are flooding the internet with AI-generated memes of their new business partner Prime Minister Anthony Albanese following tax changes announced in the budget, which Pape says are misleading
Pape said the existing small business capital gains tax concession regime already allows many owners to reduce or eliminate capital gains tax when selling a business.
‘The real risk is using the tax rate as a reason not to back yourself. Building something from nothing, employing people, serving your community.
‘It’s a hard life. It’s also one of the most rewarding things a person can do. Don’t let a meme talk you out of it.’
Pape also argued that trusts should be taxed, despite previously potentially benefiting from the same arrangements himself.
‘Okay, so this one stings – you see, my kids have been nothing but a spectacular financial loss since the day they arrived.
‘I was counting down the days until they turned eighteen, when I could finally start distributing trust income to them and claw something back.
‘And then the bloody government snapped that door shut just as my eldest was getting close to useful.
‘Yet it actually makes sense. The system lets wealthy families with good accountants pay less tax than nurses and tradies. That doesn’t pass the pub test.’
Senator Pauline Hanson (pictured) poses with the private plane gifted to her by billionaire mining magnate, Gina Rinehart as polls predict One Nation supporters will soar
Despite acknowledging Australia now carries its highest tax burden since World War II, Pape said the country remained one of the wealthiest and safest places in the world.
‘What really worries me isn’t the tax take. It’s that our outrage meter seems to be stuck at eleven,’ he wrote.
‘It feels like we’re drifting towards America, where everything is viewed through a political lens and everyone is absolutely furious all the time.
‘If we get angry enough we might just end up with Pauline as our PM, and the greatest economic insight she’s ever had was asking – ‘Why can’t we just print more money?’ – seriously, look it up.
‘Life is good, Brian, especially when you log off.’
