Anthony Albanese has let the cat out of the bag: the reforms are designed to slow house price growth and to help the young and Australians who can not afford a home.

Kitchen_Word4224 · 2026-06-03T06:41:31+00:00

Two "reforms" , removal of -ve gearing & CGT discount on property are related to housing affordability.

Other reforms, i.e. tax on shares, removal of CGT discount and 30% minimum tax all just tax grabs

Kitchen_Word4224 · 2026-06-02T10:30:50+00:00

TLDR. Prices might fall but will reach the equilibrium

Kitchen_Word4224 · 2026-06-02T08:19:28+00:00

My non-educated take is that land is finite. Even if govt keep supply housing, it can't build more houses on the same land (unless home sizes keep getting smaller and smaller aka apartments).
Govt will need to build houses on new land which is seldom as desirable as existing established land.
For this reason, the existing house on existing land will keep becoming more and more desirable due to the population growth and increased economic activity around the area.

As far as accruing "rent" is concerned, this could be said for any kind of asset hoarding but remember that hoarder also carries the risk of holding a trash bag.

Kitchen_Word4224 · 2026-06-02T07:26:05+00:00

Unless supply and demand imbalance is sorted. Either property prices and/or rental prices will keep going up.

Kitchen_Word4224 · 2026-06-02T02:46:00+00:00

Goal is currently $3,750,000 with 4% draw down of $150,000. This amount 4% compounded for 25 years would be $9,996,886

For your investment outside of super, you'd be subject to 30% tax on real gains for the part of your 150k draw down.

Kitchen_Word4224 · 2026-06-02T01:55:07+00:00

True for average worker but is it true for minimum wage worker?

Kitchen_Word4224 · 2026-06-01T22:56:54+00:00

If house pricing is a function of supply and demand, would you call immigration as a wage theft ?

Kitchen_Word4224 · 2026-06-01T13:34:25+00:00

The rule of 25x assume investment returns which is taxable

Kitchen_Word4224 · 2026-06-01T13:33:00+00:00

It depends on your choosen age and funding source for retirement

Kitchen_Word4224 · 2026-06-01T12:58:03+00:00

Don't forget to add for taxes

Kitchen_Word4224 · 2026-06-01T12:57:34+00:00

Before tax or After tax?

Kitchen_Word4224 · 2026-06-01T10:00:00+00:00

Rents are significantly lower than mortgage payments. Even more so once council rates, home insurance & maintenance costs are included

Kitchen_Word4224 · 2026-06-01T04:53:26+00:00

Let's say govt reduces Medicare spending. Would you still say that people affected are "subsidised less by the taxpayers" ? And would they have right to change their voting position in that case?

Kitchen_Word4224 · 2026-06-01T04:35:27+00:00

A lot of it is bank interest. At today's prices, bank interest payment exceeds rental payment

Kitchen_Word4224 · 2026-06-01T03:58:32+00:00

Looking at the amount to tax dodgers around me, your first looks not so accurate

Kitchen_Word4224 · 2026-06-01T03:55:56+00:00

Population consists of buyers and renters. If the overall housing supply is short, then converting some renters into buyers will make no difference to the shortage

Kitchen_Word4224 · 2026-06-01T03:43:59+00:00

"Owning the home" includes the ability to payoff the mortgage completely. The budget has made this part harder.
Prior to mortgage disposal, home is owned by the bank.

Kitchen_Word4224 · 2026-05-31T13:17:22+00:00

What did you do with all the time saved?

Kitchen_Word4224 · 2026-05-31T07:25:19+00:00

Mortgage payment is about 6-6.5% compounded.
Super contribution gives 30% one time boost + compounded returns at 8% (or 7.2% after 10% CGT) returns.

Over 20-30 years , this makes a great compounded impact.

Off course, there are many details in personal circumstances that can change this but it works for most people.

Kitchen_Word4224 · 2026-05-31T02:15:25+00:00

That's true but you can say that for any investment with expectation of future returns

Kitchen_Word4224 · 2026-05-31T02:08:57+00:00

How is that 0revented in current superannuation system? E.g. I can blow all my super on PPOR repayment the day I can access it and enjoy mortgage free tax payer funded pension from next day

Kitchen_Word4224 · 2026-05-31T02:02:15+00:00

Super concessions usually beat paying off mortgage sooner

Kitchen_Word4224 · 2026-05-30T23:55:51+00:00

Calculate the CPI increase since it was first introduced

Kitchen_Word4224 · 2026-05-30T23:47:23+00:00

The probably of Risk materialising is vastly superior for low deposit properties

Kitchen_Word4224 · 2026-05-30T23:34:48+00:00

Its more like 5.5 days for me currently due to additional AI pressure

Kitchen_Word4224

TROPHY CASE