2026 Budget

[Seeds]

Will this be the first time in decades where the budget includes serious reform.

The rumours seem strong.

Could negative gearing be gone. Not just cut but gone.

Could capital gains discount be halved or even replaced with solely inflation indexing.

These changes could be far bigger then what Shorten took the election.

It seems like chalmers wants to go hard. But will Albanese allow him to? Or will he end up doing his Trump impression of a TACO once again?

Readers over at the Australian are getting scared.

Never been this excited for a budget in years.

 

[Seeds]

They are going to protect boomers and grand father housing investments from negative gearing and capital gains tax while pretending to be helping young people arent they?

Yet it will only be young people who pay the tax.

They should not grandfather this. Old people need to pay.

 

[Carn The Berries]

They are going to protect boomers and grand father housing investments from negative gearing and capital gains tax while pretending to be helping young people arent they?

Yet it will only be young people who pay the tax.

They should not grandfather this. Old people need to pay.

Reading between the lines, based on what is in the public domain at the moment, it seems like they might go all the way with CGT and not grandfather it (and the very least on existing dwellings).

It would be a ballsy move, that's for sure, but would also deliver some actual (and much needed) reform in the housing sector.

 

[Billy ray]

the CGT reforms are being done half assed (ie remove it from all assets not just housing) to protect their own interests as homeowners but to look like they are doing something. if they left the discount on other assets, you could see a flight towards these an free up some housing stock, but, wont happen now.

 

[Seeds]

Reading between the lines, based on what is in the public domain at the moment, it seems like they might go all the way with CGT and not grandfather it (and the very least on existing dwellings).

It would be a ballsy move, that's for sure, but would also deliver some actual (and much needed) reform in the housing sector.

I hope you are right. The only way these policies help housing affordability is if they force investors to sell some of their homes. If its grandfathered it will reduce sales as investors will be desperate to hold onto the tax advantages.

 

[Seeds]

Show time .....

 

[Ice-Wolf]

So who is giving the budget reply?

Coalition Treasury Spokesman Tim Wilson or Leader of the Opposition in the House Barnaby Joyce?

 

[Golden_6]

Absolutely shambolic are some of these changes.

 

[Mighty Eagles]

So much for 'my word is my bond'.

 

[Seeds]

30 percent minimum tax rate on capital gains. Wowee. How has that got no mention in the media.

People who retire and then sell shares no longer get to avoid capital gains tax once their income goes to near zero.

Massive.

 

[Rotayjay]

I'm disappointed in the grandfathering, however I'm pleased Chalmers has finally pulled the trigger on controversial tax reform. This will be remembered as an historic night. It will also burnish Jim Chalmers' 'courageous reformer' credentials for his obvious prime ministerial ambitions.

Something is better than nothing. Supra nihil.

 

[Mofra]

They're certainly not playing it safe. It's the start of serious reform, and no doubt they will need to burn some serious political capital to sell the changes.

Federal Labor are open to attacks from all sides now with NDIS reform, tax reform, housing policy, etc.
I'm not sure the working tax offset will do too much to ward off attacks.

 

[Rotayjay]

Family and business trusts are an absolute rort upon ordinary salary and wage earners. It was well past time to crack down on them.

 

[Seeds]

They havent put a minimum tax rate on super.

Once you retire cap gains tax on first 1.9 million of super assets is 0 percent. 10 percent on assets from 1.9 million to 3 million.

Any investment outside super pays 30 percent cap gains tax regardless of your annual income.

This is going to drive all smart money into super. Or new investment properties which keep the 50 percent cap gains discount and negative gearing.

This may have a bigger impact on housing affordability then the forecasters think.

 

[Rotayjay]

This may cost some seats at the next election, though Albo is currently on top of the political world while his opponents are bleeding to death. It was now or never.

 

[Rotayjay]

In this interview, Tim Wilson is currently consigning the Liberal Party to not gaining any more voters ever of people born after 1990. Good job, Tim.

 

[Barrybran]

30 percent minimum tax rate on capital gains. Wowee. How has that got no mention in the media.

People who retire and then sell shares no longer get to avoid capital gains tax once their income goes to near zero.

Massive.

Gut feel is it won't be that black and white. I'm curious about the detail behind this.

 

[leon123]

30 percent minimum tax rate on capital gains. Wowee. How has that got no mention in the media.

People who retire and then sell shares no longer get to avoid capital gains tax once their income goes to near zero.

Massive.

I think, pensioners are excluded

 

[Barrybran]

I'm disappointed in the grandfathering, however I'm pleased Chalmers has finally pulled the trigger on controversial tax reform. This will be remembered as an historic night. It will also burnish Jim Chalmers' 'courageous reformer' credentials for his obvious prime ministerial ambitions.

Something is better than nothing. Supra nihil.

Grandfathering is only fair. People build entire financial strategies around the current legislation. Imagine retiring an downsizing and being slugged with additional capital gains tax without warning. I think they've taken the right approach here.

 

[Billy ray]

Ive been out and havent seen detail. But heard cgt stuff starts july 2027.
Will current investors in housing dump their stock over next twelve months?

 

[Seeds]

All money will now go into super. Which is mostly shares.

No smart person will now try to compete with a home owner on an existing property at an auction from now on given these new policies. This is huge for increasing home ownership.

 

[Seeds]

A lot of people on high wages have had a plan of buying shares while working and then selling once they retire and paying virtually no caps gain tax.

That wont work now. And they cant change strategy because even with the 50 percent discount on their current shares they cant sell now. If they sell now while having a marginal tax rate of 47 percent they will still end up paying 24 percent on the nominal cap gain including inflation.

No grandfathering for people with this strategy.

 

[leon123]

All money will now go into super. Which is mostly shares.

No smart person will now try to compete with a home owner on an existing property at an auction from now on given these new policies. This is huge for increasing home ownership.

Not great for renters particularly in non growth regional areas

 

[Seeds]

Not great for renters particularly in non growth regional areas

Its great for renters who have ambition to buy houses as they no longer have to compete with investors.

And this will reduce the supply of renters making it easier for renters with no ambition to buy property as they will now be competing with less renters.

 

[stormee]

I do feel like a trick was missed not dealing with gas taxes. On one hand you’re telling people they now can’t offset their tax losses against their tax gains on property assets (I acknowledge the income sources can technically be different here and we’re talking about an investment in places people live), which is fine. But on the other hand you have a tax system designed so that the gas majors can use capex and amortisation to never, ever pay PRRT on extremely profitable investments. Which you refuse to change.