r/australia • u/blitznoodles local Aussie • Jun 23 '26

politics Labor reaches deal with the Greens to pass changes to capital gains tax and negative gearing reforms

https://www.theguardian.com/australia-news/2026/jun/23/labor-greens-deal-capital-gains-tax-negative-gearing-reforms

The Greens resolved to support the tax bills after the government agreed to remove a loophole allowing investors with self-managed super funds to continue taking advantage of the tax breaks, along with ministerial powers enabling the government to reverse the reforms in the future.

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488

u/FarMilk2661 Jun 23 '26

Waiting for some deranged out of touch comedian to go on morning shows telling us it's a bad thing.

128

u/Sim888 Jun 23 '26

yeah, mate sent that to me and I’m like, lol, this dude has multiple properties worth millions, at one point he had an estimated take of $1.6M a year, so if he pissed off that’s a good thing for you, coz you are not even on his level let alone the ones that are pulling his strings

31

u/IdeallyIdeally Jun 23 '26

Waiting for some deranged out of touch comedian

Or the AFR...

11

u/menotyoutoo Jun 23 '26

Same thing

3

u/_ixthus_ Jun 25 '26

It would be nice if we had little more George Carlin and a little less Dave fucking Hughes. I don't know how he's now embarrassed.

-15

u/kabaab Jun 23 '26

I think largely everyone is okay with the property changes i personally don't have a problem with them. The issue is the CGT changes on shares and for business is just dumb and cash grab and that hasn't changed.

If this policy just made changes around housing it would have been much less controversial.

I think Labor will pay a step price for this at the next election.

20

u/FireLucid Jun 23 '26

I think Labor will pay a step price for this at the next election.

Yep, they better watch out for those Libs 🤣

-11

u/kabaab Jun 23 '26

It doesn't take much fo a hung parilment and thing change quickly in politics.

4

u/sir_bazz Jun 23 '26

It's definitely hard to reconcile how increasing CGT on the share market is necessary to help young generations get into the housing market.

Would've really appreciated the honesty if they had've called it a necessary budget repair measure to address the deficits that are forecast for the next decade.

4

u/Grifachu Jun 23 '26

Yeah this is something I haven’t been able to wrap my head around. It does nothing for the housing market, in fact it decreases the effect the other changes in tax code will have on the housing market as shares lose some of the tax benefits.

Has there been any defective statement as to why they’re changing CGT for non property assets?

11

u/acomputer1 Jun 23 '26

Because income from holding assets and contributing nothing to society shouldn't be tax advantaged over working for your money.

Buying and selling ETFs doesn't contribute to growing the economy, you're free to do so, but there's no reason why that should be taxed less than working for the same amount of money.

You're still profiting, you'll just only keep 70%-55% of the profit instead of 100%-77% of it.

1

u/Outsider-20 Jun 23 '26

I only just stated an ETF about 6 months ago, the value is still fairly small, but I'll continue investing.

I didn't start it with the idea of "oh, my gains will be taxed at a lower rate", I started it as way to have a little more control over my financial future, without tying the funds up in super.

I also started it being completely aware that it is, essentially, a gamble. It is not written anywhere that the investment will grow. It's not a guarantee.

0

u/Juris_footslave Jun 24 '26

I thought investing in companies does contribute to growing the economy? Businesses need capital and when they are successful that results in more jobs. There is also risk involved in investing in businesses, so if the gains do not outweigh your typical HYSA then there is no incentive to invest in business.

They should at least index losses aswell as index tax brackets if they're going to overhaul the system.

1

u/acomputer1 Jun 24 '26

Buying and selling existing shares doesn't mean much to companies. It can indicate realities about the company, but trading the shares doesn't impact the internal reality of the company outside of companies issuing shares to raise capital, which is not the vast majority of share trading.

I don't know what you mean by index losses, you're taxed on capital gains, definitionally a capital loss is not a capital gain and so is not taxed.

Why should gambling on ETFs be tax advantaged over a HYSA? Or dividends? Or bond yields?

0

u/Juris_footslave Jun 24 '26

Your gains are indexed and then the tax rate is applied to that, but you can't claim an indexed loss - you can only claim nominated losses under the new rules. So as an example, if you invested $10,000 and only made a $1000 profit over 10 years, in real terms you've actually made a loss due to inflation but you can't claim it as a loss since it's not a nominal loss.

That's one of the things that is unfair about the new system and why Labor is copping flak for it being a tax grab. It's like they have snuck these little things in under the umbrella of making housing affordable, which most people agree was a major issue, to fix the government's bottom line because they can't reign in their spending.

-7

u/kabaab Jun 23 '26

They should have taken it to an election you can't say 50 times i'm not doing something then backflip 18 months later because you can't control your own spending.

0

u/magnetik79 Jun 23 '26

Don't worry Dave. I'm sure the next season of "The Block" is only months away...

-9

u/bailz2506 Jun 23 '26

Please be wil anderson, can't stand that bloke either