WEBVTT - The Rita Panahi Show | 15 May 0:00:02.840 --> 0:00:05.040 On scorn needs Ostrodia. 0:00:05.240 --> 0:00:07.280 This is the Wader Panalte Show. 0:00:08.840 --> 0:00:11.080 Good evening, Welcome to the reader Panahe show. 0:00:11.119 --> 0:00:14.160 I'm Caroline Druso coming up on the show tonight, and 0:00:14.160 --> 0:00:17.760 a property developer delivers a die warning for Australian renters. 0:00:18.200 --> 0:00:20.840 Dan Wild joins me to discuss that and the day's 0:00:20.840 --> 0:00:24.960 top headlines. Labor's intention to tax unrealized capital gains, well, 0:00:24.960 --> 0:00:27.520 that has caused quite a stir. I'll be joined by 0:00:27.560 --> 0:00:30.639 Jeff Wilson to explain what that means for superannuans and 0:00:30.760 --> 0:00:34.479 our economy. And of course everyone's favorite segment left is 0:00:34.520 --> 0:00:38.159 losing it, including this compassionate lefty with a message for 0:00:38.280 --> 0:00:39.080 South Africans. 0:00:39.320 --> 0:00:43.839 Yeah, this is for all you yit South africaners that 0:00:43.880 --> 0:00:45.879 are being shipped in by Trump. You need to know 0:00:46.040 --> 0:00:48.520 the majority of Americans don't want you here. 0:00:48.760 --> 0:00:51.639 But first joining me now to discuss the day's headlines 0:00:51.720 --> 0:00:55.200 is Deputy Executive Director for the Institute of Public Affairs 0:00:55.280 --> 0:00:59.800 Daniel Wild. Dan a fascinating development this week ASIK is 0:00:59.840 --> 0:01:04.200 so doing mcquarie for allegedly misreporting our short selling over 0:01:04.240 --> 0:01:06.880 a period of fourteen years. Now, what are the nature 0:01:06.880 --> 0:01:09.240 of the allegations and why is that happening now? 0:01:12.040 --> 0:01:13.240 Yeah, look there's a couple of things. 0:01:13.280 --> 0:01:16.920 It's I think Acid has been pursuing McQuary for some 0:01:17.000 --> 0:01:19.399 time now that they weren't correctly or they were under 0:01:19.400 --> 0:01:22.640 reporting their short selling. So this can have implications for 0:01:22.720 --> 0:01:25.319 the broader market. And what Acik is saying is it 0:01:25.319 --> 0:01:28.080 can impact the confidence of the market. You know what 0:01:28.120 --> 0:01:30.600 I think it's really interesting here is that it's an 0:01:30.640 --> 0:01:33.280 example of what happens, whether it's mcquarie or whether it's 0:01:33.360 --> 0:01:36.520 other big businesses and banks in Australia, when you take 0:01:36.520 --> 0:01:39.800 your eye off the ball. Many of these organizations spend 0:01:39.840 --> 0:01:43.760 all of their time moralizing to Australians about diversity, equity 0:01:43.760 --> 0:01:48.200 and inclusion or ESG mandates and quotas and climate change 0:01:48.240 --> 0:01:51.559 and refusing to lend to farmers because of climate change 0:01:51.560 --> 0:01:54.000 and other considerations. Well, you know, this is what happens 0:01:54.040 --> 0:01:56.080 when you take your eye off the ball and when 0:01:56.120 --> 0:01:59.320 you ignore your key business and key considerations in this 0:01:59.400 --> 0:02:01.640 casinancial institutions. 0:02:01.680 --> 0:02:03.040 And I think a lot of Australians look. 0:02:02.880 --> 0:02:04.720 At this and say, well, you know, just get back 0:02:04.760 --> 0:02:07.600 to basics, focus on your core business rather than engaging 0:02:07.600 --> 0:02:10.639 in woke moralizing that I suspect is a part of 0:02:10.680 --> 0:02:12.239 the reason why they've taken their eye off the ball. 0:02:14.280 --> 0:02:15.639 Yeah, it does appear to be that. 0:02:15.840 --> 0:02:19.239 And look, that'll be very very interesting once those proceedings 0:02:19.520 --> 0:02:21.720 progress it and we start to see a bit more 0:02:22.880 --> 0:02:25.880 meat on those bones. Now, Tim Gerner, he's not backwards 0:02:25.919 --> 0:02:29.000 in in saying he's peace and he has been very 0:02:29.040 --> 0:02:32.440 controversial before, but this week he said that he foresees 0:02:32.480 --> 0:02:35.160 a fifteen year rental crisis ahead. 0:02:35.760 --> 0:02:38.680 So Dan, firstly, why is it that long? And what 0:02:38.720 --> 0:02:40.079 does he suggest is the cause? 0:02:42.639 --> 0:02:45.200 Well, I think there's a couple of things here, Caroline. 0:02:45.200 --> 0:02:46.960 I mean, the number one cause that we have in 0:02:47.000 --> 0:02:51.120 this country is this massive unplanned migration intake that's been 0:02:51.120 --> 0:02:54.560 taking place since COVID. It has not been planned for, 0:02:54.680 --> 0:02:56.920 it hasn't had the consent of the community, and it 0:02:56.919 --> 0:02:59.120 also hasn't been targeted towards areas. 0:02:58.760 --> 0:02:59.800 Of economic needs. 0:02:59.840 --> 0:03:02.079 So you know, we have a housing crisis because we've 0:03:02.080 --> 0:03:05.760 had this massive surge of demand coming from this massive 0:03:05.800 --> 0:03:08.560 migrant intake. Now I'm not blaming the migrants themselves, because 0:03:08.560 --> 0:03:10.360 of course you'd want to come to our great country 0:03:10.840 --> 0:03:12.880 and have a better future, but you know, it's the 0:03:12.880 --> 0:03:15.720 faults of governments for having this massive demand without the 0:03:15.760 --> 0:03:18.600 supply coming online. It's not just housing. All you have 0:03:18.639 --> 0:03:20.840 to do is look at the roads, the social services, 0:03:20.880 --> 0:03:22.960 how long it takes to get into a GP appointment, 0:03:23.720 --> 0:03:26.320 local schools. Often in many of these developments there's no 0:03:26.720 --> 0:03:29.200 local public school in place. So you know, these are 0:03:29.200 --> 0:03:31.360 massive issues. And yes, at the same time, we have 0:03:31.400 --> 0:03:34.000 a supply side issue when you look at the taxes, 0:03:34.120 --> 0:03:37.920 the red tape, all of the cost imposts upon developers 0:03:38.320 --> 0:03:41.240 when they actually do want to set up a new development. 0:03:41.320 --> 0:03:44.280 So look, the number one thing governments must do immediately 0:03:44.320 --> 0:03:47.200 is to cut our immigration intake to ease the pressure 0:03:47.800 --> 0:03:49.200 on the housing market. 0:03:51.080 --> 0:03:51.680 Absolutely. 0:03:51.720 --> 0:03:54.200 And if you are going to bring people in, please 0:03:54.240 --> 0:03:58.080 bring in tradees because we definitely need a few more 0:03:58.080 --> 0:03:59.960 of those, and it would also be helpful I suppose 0:04:00.040 --> 0:04:02.440 if a few less building companies went under. 0:04:03.480 --> 0:04:05.280 But you know, another one of. 0:04:05.280 --> 0:04:08.920 Those woes I suppose for business but also for the 0:04:08.960 --> 0:04:11.960 household is the cost of energy. And probably the least 0:04:12.000 --> 0:04:14.280 surprising piece of news this week is that New South 0:04:14.320 --> 0:04:18.440 Wales is the second most expensive state to run household appliances. 0:04:18.960 --> 0:04:21.560 And guess what dan the cost is going to continue 0:04:21.640 --> 0:04:24.680 to go up. So this is obviously going to be 0:04:24.800 --> 0:04:28.000 unsurprising to anyone with half a clue. But how can 0:04:28.040 --> 0:04:31.599 these governments continue to fail on energy policy when the 0:04:31.640 --> 0:04:33.680 reality is clear for all of us to see. 0:04:35.960 --> 0:04:39.479 Well, exactly, this has been a long time coming. You know, 0:04:39.520 --> 0:04:42.680 we've been warning about the consequences of net zero for 0:04:42.760 --> 0:04:44.640 a very long time and it's you know, this is 0:04:44.720 --> 0:04:47.760 net zero in action. It's how it impacts the day 0:04:47.760 --> 0:04:51.880 to day life of Australians, not just through energy bills, 0:04:51.920 --> 0:04:55.480 not just through the increased risk of blackouts, but through 0:04:55.520 --> 0:04:58.440 the things that we do every single day. 0:04:58.960 --> 0:05:01.760 And you know, fortunately this is going. 0:05:01.560 --> 0:05:05.480 To continue until we remove net zero and until we 0:05:05.520 --> 0:05:08.960 remove emissions as a centerpiece of our energy policy. I mean, 0:05:09.040 --> 0:05:11.440 energy policy should be focused on one thing, and that 0:05:11.600 --> 0:05:16.640 is cutting costs, reducing prices, to ease the burden on households, 0:05:16.640 --> 0:05:19.080 to ease the burden on businesses, and make sure we 0:05:19.080 --> 0:05:23.359 can actually have a manufacturing and heavy industry sector again. 0:05:23.520 --> 0:05:26.000 So look, unfortunately Australians are going to keep feeling the 0:05:26.040 --> 0:05:29.320 pain while these inner city activists push the net zero 0:05:29.440 --> 0:05:30.520 agenda upon us. 0:05:32.400 --> 0:05:36.600 And despite all of that, and still on this topic, 0:05:36.640 --> 0:05:39.840 you know, this sector, this energy sector has vacuumed up 0:05:39.960 --> 0:05:42.760 all manner of government grants and subsidies over the last 0:05:42.760 --> 0:05:45.760 few years. And for example, now questions are being asked 0:05:45.760 --> 0:05:50.120 about fmg's close Gladstone plant. Well, what's the story here 0:05:50.160 --> 0:05:54.440 and how those subsidies and grants impact the broader industry. 0:05:57.000 --> 0:05:59.040 Yeah, I think there's a couple of things. I mean, 0:05:59.080 --> 0:06:01.800 green hydrogen has basically been shown to be a hoax 0:06:02.120 --> 0:06:04.960 and a bit of a fraud being perpetuated on the 0:06:04.960 --> 0:06:08.160 Australian people, and in particular on those who are at 0:06:08.200 --> 0:06:10.800 risk of losing their jobs in traditional industries. They were told, oh, 0:06:10.880 --> 0:06:13.760 you're going to get new jobs in green hydrogen. Well, 0:06:13.800 --> 0:06:16.000 I mean that's just not happening. So, and the other 0:06:16.040 --> 0:06:19.040 point is this is used green hydrogen has been used 0:06:19.080 --> 0:06:22.080 as a bit of a front to fleece tax payers 0:06:22.080 --> 0:06:25.560 of subsidies. And you've got these sort of subsidy hunters 0:06:25.600 --> 0:06:27.680 that go around and they set up these projects and 0:06:27.720 --> 0:06:29.919 get subsidies and then don't go ahead with the projects 0:06:30.000 --> 0:06:31.080 or the projects shut down. 0:06:31.480 --> 0:06:33.719 And I think it's a real issue. 0:06:33.760 --> 0:06:36.240 I think the subsidies should be paid back where a 0:06:36.279 --> 0:06:39.400 project does not go ahead, and we also need to 0:06:39.440 --> 0:06:42.200 get real about this fact that green hydrogen is not 0:06:42.240 --> 0:06:44.280 the future, at least not at the moment. I'm all 0:06:44.320 --> 0:06:46.880 in favor of exploring new technologies, but at the end 0:06:46.880 --> 0:06:49.159 of the day, we need base load power supply that 0:06:49.279 --> 0:06:52.479 actually exists right now, and what we have is coal 0:06:52.560 --> 0:06:54.159 and gas. That's how you keep the lights on and 0:06:54.200 --> 0:06:58.000 get prices down and keep regional communities ticking over. 0:07:00.720 --> 0:07:03.800 Now, want to end education and a fascinating piece in 0:07:03.839 --> 0:07:06.400 the age where Frank Cardi, and he's the chair of 0:07:06.480 --> 0:07:10.800 Victoria's Independent Office of School Dispute Resolution, has suggested that 0:07:10.960 --> 0:07:14.160 parents should face it a thousand dollar fine for defaming 0:07:14.640 --> 0:07:19.560 teachers or principles online. Now, Daniel, I'm sure there is 0:07:19.600 --> 0:07:22.040 a problem there of some sort, but is that. 0:07:22.080 --> 0:07:22.880 Really the solution? 0:07:25.040 --> 0:07:26.280 Well, sadly, maybe it is. 0:07:26.480 --> 0:07:30.320 I mean, I haven't come across this before, but you know, 0:07:30.320 --> 0:07:32.920 reading the article, it's something that's not common, but it 0:07:32.960 --> 0:07:36.360 does happen. And look, I think that a school has 0:07:36.400 --> 0:07:40.760 every right to protect its teachers and its principal. I mean, 0:07:40.800 --> 0:07:43.800 I was actually a candidate for the Liberal Party in 0:07:43.800 --> 0:07:46.120 the election recent federal election, and one of the things 0:07:46.160 --> 0:07:48.800 I did was meet with schools and school principles, and 0:07:48.840 --> 0:07:50.720 I was shocked to learn that one of the highest 0:07:50.760 --> 0:07:53.560 burnout rates and one of the highest levels of actually 0:07:53.560 --> 0:07:57.160 post traumatic stress is among principles. So I don't doubt 0:07:57.160 --> 0:07:58.880 that there's a real problem here. And it's not just 0:07:58.960 --> 0:08:01.520 this particular issue, but the range of other issues that 0:08:02.120 --> 0:08:05.120 principles and school staff have to deal with. So I mean, 0:08:05.160 --> 0:08:10.000 if you've got parents that are defaming or abusing teachers 0:08:10.200 --> 0:08:12.160 or principles or support staff, then I think there needs 0:08:12.160 --> 0:08:14.920 to be consequences. And it's just I think another example 0:08:14.960 --> 0:08:18.040 of what a mess, what an absolute mess our education 0:08:18.160 --> 0:08:19.400 system has become. 0:08:19.480 --> 0:08:20.080 Unfortunately. 0:08:22.200 --> 0:08:25.000 Yeah, and it appears to me that there's all these 0:08:25.040 --> 0:08:28.760 other underlying issues and I just feel like, you know, yes, 0:08:28.800 --> 0:08:30.840 this is something that needs to be dealt with, but 0:08:30.880 --> 0:08:33.480 there's probably also those deeper issues that need to be 0:08:33.600 --> 0:08:36.800 dealt I think this is symptomatic of something else. Essentially, 0:08:36.880 --> 0:08:40.080 now onto the UK and here is British Prime Minister 0:08:40.200 --> 0:08:44.280 Keir Starmer and a stunning about face on immigration policy. 0:08:44.760 --> 0:08:48.559 So when you have an immigration system that seems almost 0:08:48.559 --> 0:08:53.360 designed to permit abuse, then you're not championing growth, you're 0:08:53.400 --> 0:08:58.200 not championing justice or how else people defend the status quo. 0:08:59.240 --> 0:09:02.960 You're actually contributing to the forces that are slowly pulling 0:09:02.960 --> 0:09:08.600 our country apart. So yes, I believe in this. I 0:09:08.640 --> 0:09:12.479 believe we need to reduce immigration significantly. 0:09:12.960 --> 0:09:13.160 Dan. 0:09:13.320 --> 0:09:15.920 Is this a come to Jesus moment for Starma or 0:09:15.960 --> 0:09:20.960 has he simply been mugged by political reality. 0:09:22.040 --> 0:09:25.240 I really think this is a landmark speech. I think 0:09:25.240 --> 0:09:28.080 this will have far reaching consequences in the UK and 0:09:28.160 --> 0:09:29.520 around the Western world. 0:09:29.640 --> 0:09:30.160 This is the. 0:09:30.160 --> 0:09:35.320 Speech that we need to hear here in Australia, and 0:09:35.360 --> 0:09:37.920 our political leaders haven't been up to the job. I'm 0:09:37.960 --> 0:09:40.440 surprised to hear it from Keir Starmer. I didn't expect 0:09:40.520 --> 0:09:42.600 him to do this, but he has and I think 0:09:42.640 --> 0:09:47.200 this is incredibly important. Clearly he's under electoral pleasure from 0:09:47.320 --> 0:09:50.560 Nigel Farage. This speech would not have been given without 0:09:50.640 --> 0:09:54.000 Nigel Farage and his Reform Party having made significant m 0:09:54.080 --> 0:09:57.160 roads at the recent council elections, and he can quite 0:09:57.160 --> 0:09:59.840 clearly see the writing on the wall that a si 0:10:00.000 --> 0:10:04.160 significant majority of mainstream British society are fed up with 0:10:04.240 --> 0:10:07.800 the immigration program. It was also a list of substantive 0:10:07.840 --> 0:10:11.079 proposals that he's put forward. He has now also created 0:10:11.120 --> 0:10:12.840 a rod for his back. He's going to have to 0:10:12.880 --> 0:10:17.200 deliver and deliver very significant reductions to the immigration intake 0:10:17.240 --> 0:10:17.880 into the UK. 0:10:18.480 --> 0:10:19.760 But a lot of what. 0:10:19.880 --> 0:10:23.400 Keir Starmer said, sadly, particularly when he talked about an 0:10:23.440 --> 0:10:27.080 island of strangers, that applies to Australia as well. And 0:10:27.120 --> 0:10:30.760 I hope the government here is paying attention because we 0:10:30.760 --> 0:10:33.800 need action on this issue. 0:10:33.880 --> 0:10:34.800 I couldn't agree more. 0:10:35.320 --> 0:10:37.680 Dan back here in Australia and new data is showing 0:10:37.720 --> 0:10:40.559 that wages grew over the March quarter and they are 0:10:40.720 --> 0:10:44.400 above the inflation rate annually. Now Michelle Bullok at the 0:10:44.440 --> 0:10:47.520 Reserve Bank, she has still suggested caution. 0:10:48.440 --> 0:10:50.680 What is the basis of that caution? 0:10:51.040 --> 0:10:55.560 What's the issue that remains and is it or is 0:10:55.040 --> 0:10:58.560 it's not as simple I suppose as the economy just recovering. 0:11:00.920 --> 0:11:02.120 Well, I think there's a couple of issues. 0:11:02.160 --> 0:11:04.920 One is we don't have much productivity growth, and so 0:11:05.040 --> 0:11:08.840 if the supply of your economy isn't increasing and wages 0:11:08.880 --> 0:11:10.960 are going up and you're pumping more money into the economy, 0:11:10.960 --> 0:11:13.880 that can fuel inflation. So there's a concern there and 0:11:13.920 --> 0:11:16.200 basically the reason why we care about the supply side 0:11:16.200 --> 0:11:18.640 of the economy is it really reflects the capacity of 0:11:18.640 --> 0:11:21.760 your economy to generate wealth, and so if that's not growing, 0:11:22.559 --> 0:11:25.040 then the fundamentals of the economy are not improving. So 0:11:25.320 --> 0:11:28.079 it's obviously great news that real wages are going up, 0:11:28.120 --> 0:11:30.240 but what we need to see is that is for 0:11:30.280 --> 0:11:32.960 that to be sustainable. And I think that's partly why 0:11:33.040 --> 0:11:35.320 Jim Chalmers has pointed to productivity as being an aim 0:11:35.360 --> 0:11:37.920 of his Now, whether they follow through and I don't know, 0:11:38.520 --> 0:11:40.640 but they're on the right path if they are generally 0:11:40.640 --> 0:11:41.679 going to do something about it. 0:11:43.600 --> 0:11:47.360 Indeed, now we don't usually associate the Australian Financial Review 0:11:47.400 --> 0:11:51.400 with the Royal family, but it appears that ASX listed 0:11:51.800 --> 0:11:55.199 company len Lease, they're expected to announce a fifty to 0:11:55.240 --> 0:11:58.560 fifty joint venture with the Crown as state Dan. 0:11:58.600 --> 0:11:59.200 What's the deal? 0:12:01.720 --> 0:12:03.559 Well, I think this is really interesting. I mean. 0:12:04.880 --> 0:12:07.520 King Charles has always had an interest in urban development 0:12:07.640 --> 0:12:11.360 and architectural beauty. He's actually set up basically his own 0:12:11.800 --> 0:12:15.160 suburb that exists, if you like, called Mini County in 0:12:15.200 --> 0:12:18.240 the UK that's kind of designed around his views of 0:12:18.520 --> 0:12:21.200 a Villagy type arrangement. Now, I don't know whether this 0:12:21.280 --> 0:12:22.920 landlease deal is going to go to that or not, 0:12:23.120 --> 0:12:25.719 But I think it's in keeping with an interest that 0:12:25.800 --> 0:12:28.880 King Charles has shown over many years about wanting people 0:12:28.920 --> 0:12:32.800 to live in a certain sort of beautified and dignified 0:12:32.880 --> 0:12:35.920 environment that often we're lacking. A lot of new developments 0:12:35.920 --> 0:12:40.000 are done in a way that are functional and are needed, 0:12:40.600 --> 0:12:43.040 but don't always take into account the human consideration. 0:12:43.160 --> 0:12:45.240 So I'm going to be interested to see what comes 0:12:45.240 --> 0:12:45.640 out of it. 0:12:47.160 --> 0:12:49.720 I think it's going to be absolutely fascinating. Daniel Wilde, 0:12:49.720 --> 0:12:52.640 thank you so much for your time joining me Now. 0:12:52.679 --> 0:12:56.400 Is Wilson Asset Management founded? Jeff Wilson. Jeff, Welcome to 0:12:56.440 --> 0:12:59.880 the show. An alluming political issue is Labour's in ten 0:13:00.600 --> 0:13:04.040 to tax unrealized capital gains. Just to start with for 0:13:04.120 --> 0:13:07.040 our audience, can you please explain the nature or the 0:13:07.040 --> 0:13:09.520 principle of what Labor's intending to do here. 0:13:10.679 --> 0:13:14.800 Yeah, look, thanks Carolyn, thanks for your time. The labor 0:13:14.840 --> 0:13:19.800 government is bringing in what they plan on bringing it 0:13:19.880 --> 0:13:25.079 just needs to go through the Senate a policy whereby 0:13:26.440 --> 0:13:29.960 come superannuation funds that have more than three million dollars 0:13:30.040 --> 0:13:33.920 in will pay an additional tax of fifteen percent, So 0:13:34.000 --> 0:13:37.560 it's all up tax of about thirty percent over that 0:13:37.600 --> 0:13:42.320 three million dollar mark, which I think no people that 0:13:42.360 --> 0:13:46.320 have money and super are concerned about. Where the concern is. 0:13:46.920 --> 0:13:53.320 For some reason, the government is talking about taxing unrealized gains. 0:13:53.360 --> 0:13:58.360 So the theoretical change in the value of your investments 0:13:58.400 --> 0:14:04.080 that aren't turned into aren't realized and it's really bad 0:14:04.240 --> 0:14:08.320 tax policy. Also, what they're saying is that they're not 0:14:08.360 --> 0:14:13.800 going to index the three million dollar cap, which means 0:14:13.880 --> 0:14:19.080 that eventually everyone in Australia with inflation will be paying 0:14:19.120 --> 0:14:23.360 this tax. So that's the parts. All I need to 0:14:23.400 --> 0:14:28.680 do is index it and remove the tax on unrealized 0:14:28.720 --> 0:14:31.840 gains which sort of are paper profits or theorical profits 0:14:31.840 --> 0:14:33.520 which may end up turning into losses. 0:14:35.160 --> 0:14:39.720 Yeah, and obviously is a huge cash flow issue. But 0:14:40.160 --> 0:14:43.800 yesterday Treasurer Jim Chalmers he tried to applicate fears. 0:14:43.800 --> 0:14:44.880 Here's what he had to say. 0:14:45.720 --> 0:14:48.480 We've made it clear that these changes are relatively modest, 0:14:48.480 --> 0:14:50.960 but they're important in the context of the budget and 0:14:51.040 --> 0:14:55.840 define benefit schemes have been appropriately recognized as part of 0:14:55.880 --> 0:14:56.280 our effort. 0:14:56.600 --> 0:15:01.239 Whenever a politician says something he is modest, it eventually, 0:15:02.840 --> 0:15:07.120 in inevitably my ears prick up. What are the unintended 0:15:07.160 --> 0:15:11.880 consequences of this policy on the superannuation. 0:15:11.280 --> 0:15:21.120 Industry, They are significant. Jim Charmers and also Anthony Albernizi 0:15:21.360 --> 0:15:25.760 they say that the taxony impacts a very small percentage 0:15:25.800 --> 0:15:30.000 of the Australian population point five percent, and that is correct. 0:15:30.640 --> 0:15:36.120 The negative part or the illogical part, or the reason 0:15:36.120 --> 0:15:40.760 why there are those significant unintended consequences is because it 0:15:41.880 --> 0:15:46.840 will impact the behavior of the whole superannuation industry and 0:15:46.880 --> 0:15:53.840 that's really a major supporter of corporate Australia. So four 0:15:53.880 --> 0:15:58.200 point two trillion dollars, it's going to impact how that 0:15:58.360 --> 0:16:02.920 four point two trillion dollar, how it behaves. So why 0:16:02.920 --> 0:16:07.240 would you take risk? So there's one point one trillion 0:16:07.280 --> 0:16:11.520 dollars in self managed super funds. They have been big 0:16:11.560 --> 0:16:16.600 supporters of startups small companies in Australia and now if 0:16:16.600 --> 0:16:19.440 they're going to be taxed on a pretend profit that 0:16:19.520 --> 0:16:22.680 may never eventuate, why are you going to take the risk? 0:16:22.800 --> 0:16:27.200 So that there are significant untended constants we estimate that 0:16:27.720 --> 0:16:32.320 are close to one hundred and fifty billion dollars will 0:16:32.320 --> 0:16:36.200 come out of the superannuation sector and go onto the 0:16:36.240 --> 0:16:40.120 property sector because there's no tax on your own home, 0:16:40.200 --> 0:16:42.160 whether it's your home or your children's home or your 0:16:42.160 --> 0:16:44.920 grandchildren's home. I mean we're already seeing it. I think 0:16:45.240 --> 0:16:49.520 front page of the Financial Review today they're saying self 0:16:49.560 --> 0:16:54.440 managed super funds panic money coming out before June thirty. Well, 0:16:54.480 --> 0:16:57.480 actually you've got to a June thirty next year to 0:16:57.480 --> 0:17:03.720 get the money to me. It's the the Unfortunately, this tax, 0:17:04.080 --> 0:17:08.240 it will backfires. It's not a it's not a good 0:17:08.280 --> 0:17:09.680 tax and a good idea. 0:17:11.600 --> 0:17:13.000 And is that because the government. 0:17:13.040 --> 0:17:16.840 I mean, look in principle, I find the principal offensive 0:17:16.880 --> 0:17:21.400 in itself. But has the government just not not consulted 0:17:21.480 --> 0:17:27.360 broadly enough or understood the actual human behaviors that are 0:17:27.520 --> 0:17:32.240 essentially going to occur to be able to avoid paying 0:17:32.320 --> 0:17:35.480 tax on unrealized capital gains. 0:17:36.040 --> 0:17:40.200 Well that could be the case, or you know what's 0:17:40.359 --> 0:17:43.800 probably more concerning. I know from page to The Australian 0:17:43.840 --> 0:17:47.800 the other day Matthew Cranston wrote an article and it's 0:17:47.800 --> 0:17:51.199 said that Treasury has been trying to bring in the 0:17:51.240 --> 0:17:55.359 tax on unrealized games for the last fifteen years. So 0:17:55.600 --> 0:17:58.879 maybe this is a way of the thin edge of 0:17:58.920 --> 0:18:02.440 the wedge getting them in. I think what the government 0:18:02.480 --> 0:18:06.400 doesn't understand, or maybe it hasn't fully modeled, or it's 0:18:06.440 --> 0:18:10.280 a bigger conspiracy theory they want to put it on 0:18:10.640 --> 0:18:16.680 other assets family homes, etc. Is Globally this has failed. 0:18:17.920 --> 0:18:21.159 More recently, Norway brought in at a tax for the 0:18:22.200 --> 0:18:30.560 very high income earners, an unrealized gains tax, and fifty 0:18:30.640 --> 0:18:34.760 six billion dollars left Norway instead of the money. They're 0:18:34.760 --> 0:18:38.119 only expecting to raise about one hundred and fifty million 0:18:38.160 --> 0:18:42.040 dollars from this new tax, and instead they went negative 0:18:43.000 --> 0:18:46.040 close to five hundred million dollars. So what they don't 0:18:46.080 --> 0:18:49.680 realize is everyone changes their behavior. And it's clear already 0:18:50.000 --> 0:18:52.760 that people are going to start changing their behavior. 0:18:54.640 --> 0:18:58.240 And you mentioned investment in startup and you mentioned the 0:18:58.280 --> 0:19:01.280 potential for that extra liquided or that extra demand to 0:19:01.320 --> 0:19:02.960 go into the housing market. 0:19:03.200 --> 0:19:05.040 But what are the broader. 0:19:04.680 --> 0:19:09.320 Industry and investment consequences either have we seen elsewhere or 0:19:09.359 --> 0:19:11.840 would we suspect under a policy change like this. 0:19:13.480 --> 0:19:17.240 Well, I mean just another example in the UK in 0:19:17.320 --> 0:19:20.719 terms of the unintended consequences. In the UK, they increase 0:19:20.800 --> 0:19:25.439 the tax on capital gains by twenty one percent and 0:19:25.480 --> 0:19:28.679 instead of the tax take increasing by twenty percent, it 0:19:28.720 --> 0:19:30.520 actually fell by ten percent. 0:19:30.760 --> 0:19:31.240 So. 0:19:32.520 --> 0:19:37.560 But probably one of the biggest ones. It's really really 0:19:37.800 --> 0:19:43.119 everyone is now questioning superannuation. Is superannuation this pot of 0:19:43.160 --> 0:19:48.960 gold that every government tries to take money out of. 0:19:50.280 --> 0:19:52.680 People that are older they can take their money out 0:19:52.720 --> 0:19:55.920 of Super and there's no consequences. Younger people are locked 0:19:55.960 --> 0:19:59.000 in there, and I'm aware of a number of people 0:19:59.000 --> 0:20:01.439 that have said, hey, look, we're not going to We're 0:20:01.600 --> 0:20:03.359 going to try to put as little as we can 0:20:03.400 --> 0:20:07.240 into Super going forward. So it really that that pool 0:20:07.240 --> 0:20:12.040 of capital that's helped support growing small businesses in Australia 0:20:13.440 --> 0:20:19.000 that Paul Keating is very proud of. You know, I think, well, 0:20:19.040 --> 0:20:21.720 he's already well he hasn't come out publicly, but privately 0:20:21.760 --> 0:20:24.639 he's come out and said that he thinks it's just 0:20:24.920 --> 0:20:27.480 really bad, bad policy. 0:20:29.560 --> 0:20:33.200 Now, just one last thing before we go, Asik has 0:20:33.359 --> 0:20:39.040 launched prosecution proceedings against Macquarie and the allegations there relate 0:20:39.080 --> 0:20:42.679 to the reporting of short selling. Obviously it's subject to 0:20:42.840 --> 0:20:45.760 a legal process and they're just allegations at the moment, 0:20:45.800 --> 0:20:48.000 But what do you make of that particular. 0:20:47.480 --> 0:20:53.199 Move, Well, in terms of does it make mcquarie a 0:20:53.280 --> 0:20:56.600 less attractive investment. You will it have a negative impact 0:20:56.800 --> 0:20:57.680 on their earnings? 0:20:58.280 --> 0:20:58.560 Uh? 0:20:58.680 --> 0:21:03.399 You know, the answer is is probably no from an 0:21:03.400 --> 0:21:09.120 investment perspective. In terms of is it the fact that 0:21:09.320 --> 0:21:14.680 they've let this happen? Is that is that poor corporate behavior? 0:21:15.160 --> 0:21:19.920 The answer is yes. Now they obviously haven't communicated clearly 0:21:20.000 --> 0:21:24.840 with the with the regulator, and they're going to suffer 0:21:24.880 --> 0:21:27.639 the consequences. You know, there will be some financial pain. 0:21:28.000 --> 0:21:31.040 It will be a one on financial pain. Maybe this 0:21:31.119 --> 0:21:36.399 is a function of growing too quickly and not having 0:21:36.440 --> 0:21:39.800 the right systems in place. That that's what appears like 0:21:40.000 --> 0:21:43.239 to me. I mean, obviously this will this is a 0:21:43.240 --> 0:21:46.840 big wake up call for them to get their house 0:21:47.200 --> 0:21:48.360 one hundred percent in order. 0:21:50.080 --> 0:21:54.320 Yeah, I'd say it absolutely would be. Jeff Wilson, thank 0:21:54.320 --> 0:21:56.120 you so much for your time and your insight. 0:21:56.480 --> 0:21:58.720 Still to come. Left is losing it. 0:21:58.960 --> 0:22:02.640 Plus Trump delivers speech to the Saudi US Investment Forum. 0:22:03.000 --> 0:22:06.679 Batio Unga Sagon joins us to explain why she labeled 0:22:06.720 --> 0:22:13.720 it the most momentous foreign policy address of her time. 0:22:19.160 --> 0:22:23.120 Welcome back, and now it's time for lefties losing it. 0:22:23.200 --> 0:22:26.320 And first up, this bloke is pretty convinced that white 0:22:26.320 --> 0:22:29.560 people coming to the US from South Africa are all racist, 0:22:30.320 --> 0:22:32.639 all of them not grateful at all to have a 0:22:32.680 --> 0:22:34.719 new home in the Land of the Free. 0:22:35.000 --> 0:22:37.000 Just there to be big goal racists. 0:22:37.600 --> 0:22:40.240 I need y'all realize what Trump just did. He brought 0:22:40.359 --> 0:22:43.560 eight thousand white people out here from South Africa, not 0:22:43.680 --> 0:22:48.040 because they need refuse, not because they need asylum. It's 0:22:48.080 --> 0:22:52.960 because he knows these eight thousand white South Africans are racist. 0:22:53.720 --> 0:22:55.920 He knows they fore to come over here and they're 0:22:55.920 --> 0:22:59.440 gonna be blatantly racist thinking that they're still in South Africa. 0:23:00.080 --> 0:23:03.400 These eight thousand races don't burn out the hard way. 0:23:03.400 --> 0:23:07.600