2026 Budget

[kalex6251]

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.

watch conservatives intensify their campaign against industry super if this happens

side-note ...... if superannuation expands significantly on the back of these changes and melbourne is the centre of this industry - what will that mean for sydneys long cherished title of australias financial capital?

 

[Barrybran]

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.

It'll be interesting to hear how strategies develop. My first thought goes to the establishment of investment companies for individuals. You'd need to earning good dollars for a long time for this to be worth it though.

 

[leon123]

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.

Yes for a certain income cohort, but not for the lowest 30 percent of household income, thats basically a constant at a generational level. This correct, renters with household income at the 40 th lowest income distributionand above, totally agree with you

 

[Mofra]

watch conservatives intensify their campaign against industry super if this happens

side-note ...... if superannuation expands significantly on the back of these changes and melbourne is the centre of this industry - what will that mean for sydneys long cherished title of australias financial capital?

Two of the majors are based in Melbourne, two of the majors plus Macquarie are based in Sydney. I think Sydney will be keepign the title for a while yet.

 

[Jello_B]

Property prices will go up in the next year or so as investors try to buy in before 30 June 2027 to retain the current negative gearing benefit?

 

[Achy Blakey Heart]

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.

He was never going to do anything about the PRRT… too many gas companies in the pocket of government.

 

[Dazzler9]

Property prices will go up in the next year or so as investors try to buy in before 30 June 2027 to retain the current negative gearing benefit?

The negative gearing cutoff is immediate. The CGT 50% discount changes in 2027?

 

[QuietB]

Property prices will go up in the next year or so as investors try to buy in before 30 June 2027 to retain the current negative gearing benefit?

Probs not. The entire Ponzi scheme relies on never ending capital gains and those gains are increasingly not there. Investors will be reluctant to buy given prices are already falling and will be expected to fall further.

Personally I think the property market is saturated. Price rises can only come from investors and there is nothing good about that.

Australia needs to shift its investment focus to the real economy and away from asset accumulation.

 

[QuietB]

So much for 'my word is my bond'.

Liberals will never overturn any of this in the outside chance they ever form government again.

 

[Rotayjay]

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.

One day we will look back and think, 'Why the **** did we encourage investment in real estate that much?'

 

[Rotayjay]

watch conservatives intensify their campaign against industry super if this happens

side-note ...... if superannuation expands significantly on the back of these changes and melbourne is the centre of this industry - what will that mean for sydneys long cherished title of australias financial capital?

Australia's superannuation pool is already too big for this country to hold, hence why the funds are now looking to invest in the US. The US share market is where it's at, anyway. The Nasdaq roughly doubles every five years.

 

[FlowersByIrene]

Australia needs to shift its investment focus to the real economy and away from asset accumulation.

Where the Government just doubled the tax on gains in the real economy?

 

[QuietB]

Where the Government just doubled the tax on gains in the real economy?

Only when you sell it - why should it be exempt?

 

[Seeds]

Where the Government just doubled the tax on gains in the real economy?

More then doubled for many once you account for the 30 percent min tax rate.

Except in super.

 

[FlowersByIrene]

Only when you sell it - why should it be exempt?

Why would any one invest the amount of money you are asking for to "focus on the real economy" when they have to pay the same tax they would on income generating assets like bonds and term deposits, but with the downside market risk of potential capital losses?

 

[QuietB]

Why would any one invest the amount of money you are asking for to "focus on the real economy" when they have to pay the same tax they would on income generating assets like bonds and term deposits, but with the downside market risk of potential capital losses?

As it currently stands no-one invests in anything except a housing Ponzi scheme.

 

[Seeds]

Yes for a certain income cohort, but not for the lowest 30 percent of household income, thats basically a constant at a generational level. This correct, renters with household income at the 40 th lowest income distributionand above, totally agree with you

Yes but those lowest 30 percent renters will no longer be competing with the other renters now will they.

 

[FlowersByIrene]

As it currently stands no-one invests in anything except a housing Ponzi scheme.

Yeah that just isn't true. Glad to see you have no clue what you're talking about.

 

[briztoon]

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.

I fear a lot/majority of the prospective buyers over the next 10 years still live at home, and are not, and will not be renters. It's very hard for anyone not on a decent salary, let's say a senior school teachers salary and above, to save while renting. I've seen it at work, where first time home (unit) buyers, moved back home with a parent to save a deposit.

When I started saving in the mid late 00's, I was on $60k a year, sharing rent with my sister in a 3 bedroom townhouse, paying $300 a week, and our rent didn't go up for the first couple years we lived there, then went up by $15 each of the next few years. Now I was lucky, I lived across the road from work, so had zero transport costs and I didn't own a car, and my job came with a free meal every shift, and not some microwave style dinner either, a proper 250g steak and veg or comparable meal.

Today, an RN nurse on $80k+ is probably managing to save half of what I saved per year (I was banking $500 a week in to my "home loan" account), if they are renting. And they need a far, far larger deposit. My first property was a townhouse, that I sold for a tidy profit in 2017. The same town house sold last year for $910k. You would need twice the amount of deposit I had in 2012, and on a single or combined income of $150k+ to get a home loan for that townhouse.

The younger me has been priced out of todays housing market. Unless I'm willing to live at home until my mid to late 20's to save a substantial deposit, to reduce the amount I need to borrow, to buy a 2 bedroom apartment. And it's much, much harder to ladder up the property ladder in todays market. Especially if you are transitioning from a young couple to a young family, facing a reduced household income for a period of time.

That RN better hope they're lucky enough to snag an intern or resident.

 

[Seeds]

watch conservatives intensify their campaign against industry super if this happens

side-note ...... if superannuation expands significantly on the back of these changes and melbourne is the centre of this industry - what will that mean for sydneys long cherished title of australias financial capital?

Its going to go gangbusters. All through voluntary comtributions.

Conservatives will flip and support super cos they will see its the only tax avoidance measure for high income earners left. Labour wont know what to do. Super is their baby. But it will now be a tax avoidance measure for high income earners.

 

[QuietB]

Yeah that just isn't true. Glad to see you have no clue what you're talking about.

How many do you own?

 

[Kram]

As it currently stands no-one invests in anything except a housing Ponzi scheme.

Embarrassing as always.

 

[QuietB]

Its going to go gangbusters. All through voluntary comtributions.

Conservatives will flip and support super cos they will see its the only tax avoidance measure for high income earners left. Labour wont know what to do. Super is their baby. But it will now be a tax avoidance measure for high income earners.

Super does get taxed though - that has largely been fixed.

 

[Barrybran]

He was never going to do anything about the PRRT… too many gas companies in the pocket of government.

Speaking of people in the government's pocket, I was a little annoyed by the reference to antisemitism. **** all racism. Don't single out one group favourably or unfavourably,

 

[leon123]

Yes but those lowest 30 percent renters will no longer be competing with the other renters now will they.

I think you are taking my statements th wrong way. It will impact on low income household renters. The policy solution is to maintain social housing provision, you know the group that cant achieve home ownsership, a group that alwys has and always will exist. Low income private rental coats will increase, again, maybe increase private rentalmassistance to low income households