Generation Development's Tax-Effective Products Expected to Garner More Interest Amid Reform, Jefferies Says

MT Newswires Live
May 12

Generation Development Group's (ASX:GDG) tax-effective products are expected to gain more interest as changes in super tax concessions approach, Jefferies said in a Monday note.

The May 2026 Australian Federal Budget is expected to abolish the 50% Capital Gains Tax Discount, to be replaced by an inflation indexing system, which is likely to improve the relative attractiveness of Generation Development's investment bond offering.

Investment bonds are taxed at up to 30% on all earnings, with no distinction between capital gain and income. Property investors are the single biggest beneficiaries of the discount, and investment bonds may become more appealing.

The investment firm assigned a buy rating on Generation Development with a price target of AU$6.35 per share.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10