And your point?
Australian budget 2026 CGT implications
- Thread starter OldFarmer
- Start date
And your point?
betterinvestmentthanshare
Well-Known Member
You’d be happy being in the 43.7% paying the most tax
This discussion is about the repeal of the CGT discount.
If you want to discuss the level of income tax I'm more than willing to do that, but it needs another thread.
There’s your answer.
The CGT was brought in so the private market would build the houses and units that the government had failed to do.
Take away the CGT and rents must go up.
There may be a small increase in home ownership but the renters will be living 4 to a room.
This is the next business model. The government encourages it!
That's correct and the policy has failed as we have a housing shortage. Successive State governments have abrogated their responsibility to provide social housing relying on the private sector which has resulted in the mess we have now.
The target market for savvy investors is not new builds in the far flung outer suburbs nor is it new units in multi story inner city suburbs, it's established housing in suburbs that are in demand as family homes. These investors are not interested in yield, they're solely interested in capital gain and are in direct competition with those wanting to purchase a house to live in. The result is that competition is fierce and prices are inflated.
Take those investors out of that market and it cools prices allowing families and first-home buyers a chance to own a home in a suburb that is more appealing than a lowset brick box in a location with substandard liveability and hours from their place of employment.
It's a sound strategy. Whether it works as expected is yet to be seen.
No. Any gain made before July 1 2027 is still eligible for the 50% deduction. After that time future gains will be subject to the new law. It's not going to increase the costs of providing a rental for existing landlords, merely trim a little fat from their capital gain should they sell. The market will decide what is an appropriate rent, not the few areshole landlords using this as an excuse to scalp renters.
The abolition of NG would have more of an impact, but around half of landlords in the market don't negative gear anyway so there won't be any impact on them, of those that do they could try to raise rents but they'll be in competition with those that don't so that won't work, or they could refinance or more likely they'll have to sell into a market that will mostly be buyers looking for a place to live.
Concerns that this policy will create havoc in the housing market is just fear mongering by those with a vested self-interest under the current status quo.
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Capital gains discounts were meant to usher in an Australia of ‘shareholders’ – not property speculators | Saul Eslake
Defenders of the Howard-era discount say ‘if you tax something more, you’ll get less of it’. But less investors in the housing market is a good thing
betterinvestmentthanshare
Well-Known Member
You’re missing a large part of investor strategy.Capital gains discounts were meant to usher in an Australia of ‘shareholders’ – not property speculators | Saul Eslake
Defenders of the Howard-era discount say ‘if you tax something more, you’ll get less of it’. But less investors in the housing market is a good thingwww.theguardian.com
Leverage in the equity property market to build wealth which ordinary Australians have no other access to investing in other sectors.
New builds will still provide this for those that have already built a large property portfolio, they can sustain the lengthy process and outlay without a return that the majority can’t.
So where does that leave the most recent property investor and future investor without access to leverage.
Albo stated promised in a media conference that he won’t take Australians back time to how it used to be……well he has done just that with these changes, taken us back to the 1990’s…….another broken promise.
See, you can’t rely on this government to fix anything, their track record speaks for its self, the only way to get to where you to be is to rely on yourself and exploit every policy, loophole and idea you can come across. It’s the way of the system.
betterinvestmentthanshare
Well-Known Member
So where now will investors again access to leverage?
It’s still the property market
There is no way new builds can keep up with demand with all the immigrantion, the government is continuing to accept 185000 migrants in per year.
Property and rent will continue to rise, the only way for rent relief will be capital control, price capping, financial repression.
It’s still the property market
There is no way new builds can keep up with demand with all the immigrantion, the government is continuing to accept 185000 migrants in per year.
Property and rent will continue to rise, the only way for rent relief will be capital control, price capping, financial repression.