what does the ATO say?
We sent them our Popi and asked them for a product ruling.
We wanted to know if how they would treat the both payments made and the capital growth from a tax perspective.
The answer is that the ATO treat both as capital.
Briliant we reckon!!!!
Click here for a full copy of the product ruling.
So what's so good about the ruling? If the Popi is owned in the right entity and for greater than 12 months try 50% tax free!
All the Popi payments made form the cost base and deducted before CGT applied.
Lets say you changed your mind after a short couple of years, all the payments can be used as carry forward losses and used against other capital gains.