I don't usually follow the Federal Budget nonsense, as it's generally a lot of content-free platitudes and political horse race analysis, but my friend and colleague Kev seemed certain that the Albanese government (of all people) were taking a step in the right direction. So my cynicism led me to seek out business lobby press releases, half-expecting to find smoking guns all over the place. I was wrong. Of course the business lobby are not going to announce "This is fine!" They are professional whingers. To them, it's always the end of the world. However this one sunny exception stood out:
AFIA is also assessing announced changes to negative gearing, set to be limited to new residential property builds, and the decision to replace the 50 per cent CGT discount with cost base indexation and a minimum 30 per cent tax from July 2027, applying to all existing CGT assets.
“In terms of our housing markets, it is pleasing to see the government balance these major tax reforms with complementary supply-side measures – establishing a $2 billion local infrastructure fund and putting $227 million towards accelerating environment and planning approvals.”
"Supply side measures" means public subsidies (such as the 5% Deposit Scheme and the Help to Buy Scheme) to maintain the steady supply of borrowers that are the bread and butter of the finance industry, and critical to keeping property prices inflating at the pretty constant rate of the last quarter century.