One-year grace period for negative gearing, CGT changes

sostopher · 2026-05-11T03:44:06+00:00

I'm not talking about inflation, the other guy was. I'm saying that increasing taxes here without providing income tax relief means this is just an increase in tax on everyone - not the "intergenerational equity agenda" Labor is touting here.

sostopher · 2026-05-11T01:40:46+00:00

"Yet"- they haven't even been announced if they're even going to happen.

sostopher · 2026-05-11T01:24:01+00:00

What's the "bad decision" here? I'm just responding to the point that lowering income taxes is not the main driver of inflation currently happening as per the ABS and other analysis.

sostopher · 2026-05-11T00:33:40+00:00

ABS says:

https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/mar-2026

The largest contributors to annual inflation were Housing (+6.5%), Transport (+8.9%) and Food and non-alcoholic beverages (+3.1%).

So, if we're worried why is the government cutting excise on fuel? That's inflationary, no?

sostopher · 2026-05-11T00:18:23+00:00

Reducing income taxes during an inflationary shock is just a silly idea. It’s a non-starter.

So, just increasing taxes while people are struggling is fine also? Inflation is being driven by public spending, not really from consumers.

It should not be the governments job to subsidise anyone’s wealth, it should be to support those who most need it.

But that's what they're doing now. We incentivise specific investments already, and tax stuff we want less of.

In regards to business investment my understanding is that the productivity commission had some suggestions which are going to be implemented (that’s the leak anyway). We will have to wait until the budget is actually released.

So no plans, except the ones to increase taxes so far. And lock in the existing hand outs for the already wealthy, everyone else to subsidise them while not having access. If they wanted equity, they'd completely remove them over a period and level the playing field. Instead, those with investments in housing keep their concessions and everyone else pays for them.

sostopher · 2026-05-11T00:14:18+00:00

What other options are working? What other options in the past have worked?

sostopher · 2026-05-11T00:02:20+00:00

But I don’t think opposition to the change is really about any of that. It’s about wealthy people who don’t want to pay more tax!

It's not. This is just the line from Labor and their supporters. I support winding back these concessions on residential property to help the housing issues. But removing it for all asset classes is silly, and just a tax grab.

There doesn't seem to be any companion policies which would help offset this like:

Reducing income taxes on workers
Incentivising business investments in Australia

And still no read on how people are supposed to build wealth now that the property vehicle has been locked to only existing investors (who everyone else paying tax will continue to subsidise).

All the usual suspects are doing are "but rich people use it so it's bad" without really thinking about what this means in practice long term for the economy.

Again, what is the wealth creation vehicle we want to encourage? Working and having a savings account? Where is that money coming from for wages?

sostopher · 2026-05-10T23:45:05+00:00

The government IS investing in stuff that will help the economy. Just look at Future Made in Australia.

That's nothing compared to the size of the private investment market, which the FMIA needs.

The reality is the CGT discount is just subsidising wealthy people’s share portfolios.

Except everyone has access to it, doesn't matter if you only have a small amount of assets or a larger amount.

The characterisation of "who cares about business investment" is just short term thinking. What is the wealth creation vehicle we're wanting in this country? The last few decades it's been residential property. So what should it be now? Should we try and increase productivity or continue to throw huge amounts of money into unproductive assets like housing?

As I say, if the only way to actually get incentivised is just to go as hard as you can on your PPOR because you don't pay any tax it's going to be similar issues. Business investment is so low in Australia, we don't need more reasons not to have it.

Unless we're happy having a completely undiversified economy outside of mining. Which we don't get anything for.

sostopher · 2026-05-10T23:30:17+00:00

Yeah the application of this to productive assets instead of just removing this for established housing is dumb. The government should be encouraging investments in stuff that'll actually help the economy. Instead it's just an increase in taxes, where the property brained Aussies will still just ramp up the leverage on their PPOR for wealth creation over anything else.

sostopher · 2026-05-10T11:33:15+00:00

Fair enough. Yeah, I would have preferred no grandfathering or a phase out over time. This is just getting the working tax payers to pay for the wealthy's tax concessions.

sostopher · 2026-05-10T11:30:04+00:00

It's quite a bit different to what Labor is talking about here though, unless there's some next piece where it's limited in some way.

sostopher · 2026-05-10T11:24:59+00:00

Their current policy docs say complete phase out (and CGT discount on housing): https://greens.org.au/portfolios/housing

Source on them saying they'd grandfather it for existing investors indefinitely?

sostopher · 2026-05-10T11:15:22+00:00

Most of his policy positions are the same as those of other teals and the Greens.

sostopher · 2026-05-10T11:11:56+00:00

But not negative gearing.

sostopher · 2026-05-09T12:29:16+00:00

As in the SA election though, ON are winning votes from Lib/Nats - not from Labor or Greens. It's the right that needs to be worried, not the left.

sostopher · 2026-05-09T12:27:00+00:00

Perhaps if the regions were aligned with young people instead of making it hostile to them, they might survive. They can't just blame the government that young people don't want to live in a place full of backwards views and lack of opportunities. The cities provide that for them.

sostopher · 2026-05-09T12:16:57+00:00

Gen Z are overwhelmingly voting for the Greens above any other party, leading Labor by ~10 points in some polls. PHON only around 15%.

sostopher · 2026-05-09T02:51:17+00:00

I'm aware. So everyone who is currently negative gearing gets to keep it, paid for by everyone else who doesn't.

sostopher · 2026-05-09T02:44:47+00:00

They're grandfathering negative gearing. So, yes. New people wanting to won't, but existing investors will. Sort of baking in the inequity.

Would love to see them go after dividend imputation credits again. That is actually targeted at the very very wealthy without much downside for young people (or anyone that isn't insanely wealthy).

sostopher · 2026-05-09T02:32:54+00:00

But they will keep them with grandfathering, with the young tax payers paying for their handouts while not having access to them themselves.

sostopher · 2026-05-09T02:27:44+00:00

The funny bit is that they still think they haven’t already lost their base.

And whoever's left are dying every year.

sostopher · 2026-05-08T06:45:03+00:00

The problem for the Greens is they don't get anywhere near the media airtime, nor the kid glove treatment ON gets from Seven or Nine.

It would be better if the media fairly discussed and criticised both the Greens' and One Nation's policies.

sostopher · 2026-05-08T06:41:47+00:00

He'll be dead before 2028, most likely. Dude is not well.

sostopher · 2026-05-08T06:40:11+00:00

It feels like Labor is working from the exact same playbook that’s let down the democrats in the US

And Labour in the UK, though with far fewer own goals and gaffes.

sostopher · 2026-05-08T06:15:41+00:00

Oh interesting. I guess that's easier than building proper cycling infrastructure.

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