1 00:00:00,520 --> 00:00:04,040 Speaker 1: Already and this is the daily This is the Daily 2 00:00:04,120 --> 00:00:15,640 Speaker 1: ohs oh, now it makes sense. Good morning and welcome 3 00:00:15,720 --> 00:00:18,320 Speaker 1: to the Daily Ours. It's Thursday, the nineteenth of March. 4 00:00:18,440 --> 00:00:19,560 Speaker 1: I'm Emma Gillespie. 5 00:00:19,760 --> 00:00:20,800 Speaker 2: I'm Zara Seidler. 6 00:00:21,160 --> 00:00:24,759 Speaker 1: A nineteen ninety nine tax discount designed to get Australians 7 00:00:24,800 --> 00:00:28,319 Speaker 1: investing is now being blamed for locking young people out 8 00:00:28,360 --> 00:00:31,560 Speaker 1: of the housing market. Nearly two decades later. The government 9 00:00:31,600 --> 00:00:34,360 Speaker 1: that introduced it is long gone and the one now 10 00:00:34,400 --> 00:00:37,960 Speaker 1: in power is eyeing to change it. Another big tax 11 00:00:38,040 --> 00:00:40,760 Speaker 1: change that's already been confirmed is going to reshape how 12 00:00:40,800 --> 00:00:44,879 Speaker 1: the wealthiest Australians are taxed only super So today we 13 00:00:44,960 --> 00:00:47,280 Speaker 1: are going to unpack everything you need to know about 14 00:00:47,360 --> 00:00:50,159 Speaker 1: Labour's moves to tax the wealthy in the deep. 15 00:00:50,000 --> 00:00:57,080 Speaker 2: Dive m I want to talk all things tax said 16 00:00:57,200 --> 00:01:02,200 Speaker 2: nobody else's me today. Before that, though, thank you to 17 00:01:02,320 --> 00:01:05,280 Speaker 2: everyone who has already filled out our podcast survey. We've 18 00:01:05,280 --> 00:01:08,479 Speaker 2: had hundreds and hundreds of responses. It is so helpful 19 00:01:08,520 --> 00:01:11,000 Speaker 2: for us. We spent the morning just looking through everything 20 00:01:11,120 --> 00:01:13,320 Speaker 2: trying to understand what we can do better and what's 21 00:01:13,360 --> 00:01:15,679 Speaker 2: really working. If you want to make your voice heard, 22 00:01:15,760 --> 00:01:17,920 Speaker 2: you can head to today's show notes and fill out 23 00:01:17,959 --> 00:01:21,200 Speaker 2: that survey. Thanks in advance. There are a couple of 24 00:01:21,400 --> 00:01:24,160 Speaker 2: converging conversations that are happening in the news cycle at 25 00:01:24,200 --> 00:01:29,520 Speaker 2: the moment about taxing certain Australians and one is about 26 00:01:29,560 --> 00:01:33,119 Speaker 2: capital gains tax and one is about superannuation. Let's start 27 00:01:33,120 --> 00:01:36,119 Speaker 2: with superannuation first, kind of hit it one by one. Yep, 28 00:01:36,319 --> 00:01:37,560 Speaker 2: what do we need to know about super? 29 00:01:37,800 --> 00:01:41,880 Speaker 1: Okay, So off the top, Australia's retirement saving system is 30 00:01:41,920 --> 00:01:46,319 Speaker 1: called Superannuation SUPER. That means that employers are legally required 31 00:01:46,400 --> 00:01:49,040 Speaker 1: to contribute twelve percent of your salary into a super 32 00:01:49,080 --> 00:01:52,480 Speaker 1: account that is invested and ideally grows and grows and 33 00:01:52,520 --> 00:01:55,200 Speaker 1: grows over time until you retire with a very healthy 34 00:01:55,240 --> 00:01:57,640 Speaker 1: nest egg to see out the rest of your life. 35 00:01:58,080 --> 00:02:02,320 Speaker 1: When your superfund makes money, say by investing in shares 36 00:02:02,600 --> 00:02:06,000 Speaker 1: that go up in value, the government takes a cut 37 00:02:06,200 --> 00:02:09,919 Speaker 1: of that increase. So right now that cut is fifteen 38 00:02:10,000 --> 00:02:12,040 Speaker 1: cents in every dollar fifteen percent. 39 00:02:12,480 --> 00:02:16,000 Speaker 2: Okay, So they're currently taking fifteen percent of the money 40 00:02:16,040 --> 00:02:18,320 Speaker 2: that's going into Super. 41 00:02:18,280 --> 00:02:21,240 Speaker 1: The money that's made from your superballance efforts. 42 00:02:21,440 --> 00:02:25,000 Speaker 2: Yes, exactly, okay, cool, And so what is changing then? 43 00:02:25,440 --> 00:02:29,040 Speaker 1: So for the very richest Australians, the cut the government 44 00:02:29,160 --> 00:02:31,680 Speaker 1: takes off those earnings is changing. 45 00:02:32,160 --> 00:02:34,239 Speaker 2: Can I just butt in here. When you say the 46 00:02:34,400 --> 00:02:37,440 Speaker 2: very richest, you're talking about the people who are contributing 47 00:02:37,480 --> 00:02:40,239 Speaker 2: the most amount to their superannuation. Is that right? 48 00:02:40,280 --> 00:02:43,000 Speaker 1: I'm talking about the Australians that have a superbalance of 49 00:02:43,080 --> 00:02:46,799 Speaker 1: three million dollars or more, which is less than one 50 00:02:46,840 --> 00:02:50,280 Speaker 1: percent of Australians with a super account. Okay, So back 51 00:02:50,280 --> 00:02:53,360 Speaker 1: in twenty twenty three, the government actually tried to legislate this, 52 00:02:53,600 --> 00:02:56,360 Speaker 1: but ran into some hurdles. It's said at the time 53 00:02:56,440 --> 00:02:59,440 Speaker 1: if your total superbalance exceeded three million dollars that the 54 00:02:59,520 --> 00:03:02,760 Speaker 1: tax rate on earnings above that threshold would double, so 55 00:03:02,840 --> 00:03:06,120 Speaker 1: from fifteen percent as I mentioned, to thirty percent. Now, 56 00:03:06,120 --> 00:03:08,440 Speaker 1: the argument there was that the government was missing out 57 00:03:08,440 --> 00:03:12,720 Speaker 1: on potential billions in revenue from taxing the wealthiest. 58 00:03:12,919 --> 00:03:16,399 Speaker 2: Should we just makelear what that means so that revenue 59 00:03:16,480 --> 00:03:19,000 Speaker 2: that is then going to the government can then be 60 00:03:19,080 --> 00:03:20,760 Speaker 2: spent on whatever. 61 00:03:20,960 --> 00:03:22,760 Speaker 1: Yeah, project spent on infrastructure. 62 00:03:23,000 --> 00:03:26,919 Speaker 2: But taxes are the biggest way that the government does, 63 00:03:27,280 --> 00:03:28,440 Speaker 2: you know, generate this money? 64 00:03:28,560 --> 00:03:28,680 Speaker 1: Yea. 65 00:03:28,800 --> 00:03:31,120 Speaker 2: This was one avenue that they were saying was not 66 00:03:31,280 --> 00:03:32,800 Speaker 2: being fully realized. 67 00:03:32,440 --> 00:03:35,280 Speaker 1: Exactly, and the government basically said that the top one 68 00:03:35,320 --> 00:03:38,960 Speaker 1: percent could afford to spend more on their supertax and 69 00:03:39,000 --> 00:03:42,280 Speaker 1: that that would have massive benefits or implications for the 70 00:03:42,360 --> 00:03:45,800 Speaker 1: revenue income overall that the government receives from taxes. 71 00:03:46,040 --> 00:03:49,120 Speaker 2: Okay, and so it's been a few years since that 72 00:03:49,200 --> 00:03:51,120 Speaker 2: plan was first announced. I remember when we covered it. 73 00:03:51,200 --> 00:03:55,120 Speaker 2: My brain was mildly exploding trying to comprehend it. But 74 00:03:55,360 --> 00:03:57,000 Speaker 2: it's obviously back in the new cycle and we are 75 00:03:57,040 --> 00:03:58,680 Speaker 2: talking about it today. Why is that? 76 00:03:59,040 --> 00:04:02,040 Speaker 1: So that proposal ran into a few problems. I want 77 00:04:02,080 --> 00:04:04,520 Speaker 1: to take you through those because they're really important to 78 00:04:04,600 --> 00:04:08,320 Speaker 1: understand the super reforms that have been legislated now. So 79 00:04:08,360 --> 00:04:13,120 Speaker 1: the first big problem was what's called taxing unrealized gains. 80 00:04:13,400 --> 00:04:16,520 Speaker 1: Now bear with me. I've made some very real examples, 81 00:04:16,640 --> 00:04:20,200 Speaker 1: but that's non mass re affected people. You know me too, well, 82 00:04:20,240 --> 00:04:23,560 Speaker 1: so Zara, Imagine you have a Pokemon card worth. 83 00:04:23,320 --> 00:04:24,080 Speaker 2: I'm already lost. 84 00:04:26,440 --> 00:04:29,880 Speaker 1: Yeah, Imagine you know someone who hasn't Pokemon card worth 85 00:04:29,920 --> 00:04:33,520 Speaker 1: ten dollars. They one day find out from someone that 86 00:04:33,520 --> 00:04:36,960 Speaker 1: that's actually now worth twenty dollars. They haven't sold it. 87 00:04:36,960 --> 00:04:39,280 Speaker 1: It's sitting in a drawer at their mum's house. But 88 00:04:39,520 --> 00:04:42,880 Speaker 1: it's an unrealized gain because you haven't actually made any 89 00:04:42,960 --> 00:04:44,320 Speaker 1: tangible cash from it. 90 00:04:44,640 --> 00:04:47,440 Speaker 2: But in future could understood. 91 00:04:47,080 --> 00:04:50,560 Speaker 1: Now you're super fund works the same way, so it 92 00:04:50,720 --> 00:04:54,080 Speaker 1: owns things like shares in companies which can go up 93 00:04:54,120 --> 00:04:57,359 Speaker 1: in value, but if the fund hasn't sold them, no 94 00:04:57,480 --> 00:05:02,880 Speaker 1: actual money has come in, so this value versus tangible cash. Now, 95 00:05:02,920 --> 00:05:07,120 Speaker 1: under the original super tax reform proposal in twenty twenty three, 96 00:05:07,279 --> 00:05:11,479 Speaker 1: the government would still want its cut of that increase. 97 00:05:11,520 --> 00:05:14,440 Speaker 2: Even though that increase hadn't been realized yet or that 98 00:05:14,520 --> 00:05:16,719 Speaker 2: money wasn't actually in anyone's account. 99 00:05:16,800 --> 00:05:19,839 Speaker 1: Yeah, exactly, And critics said that that was unfair because 100 00:05:19,880 --> 00:05:23,039 Speaker 1: basically to pay that tax bill, some people might have 101 00:05:23,080 --> 00:05:25,760 Speaker 1: had to sell assets that they weren't ready. 102 00:05:25,480 --> 00:05:28,479 Speaker 2: To I understand, And so that was one issue. What 103 00:05:28,720 --> 00:05:29,719 Speaker 2: was another issue? 104 00:05:29,720 --> 00:05:32,560 Speaker 1: So the second problem was that the three million dollar 105 00:05:32,600 --> 00:05:36,400 Speaker 1: threshold I mentioned wasn't going to move with inflation. Now, 106 00:05:36,440 --> 00:05:38,440 Speaker 1: as I said, less than one percent of Australians have 107 00:05:38,520 --> 00:05:41,640 Speaker 1: a superbalance that's over three million dollars, but over time, 108 00:05:42,040 --> 00:05:46,120 Speaker 1: without moving with inflation, that three million dollar figure could 109 00:05:46,240 --> 00:05:49,200 Speaker 1: end up catching ordinary Australians so more and more people 110 00:05:49,200 --> 00:05:51,560 Speaker 1: would be impacted by this, and that's not kind of 111 00:05:51,600 --> 00:05:54,560 Speaker 1: in the spirit of what the legislation was trying to achieve. 112 00:05:54,839 --> 00:05:58,800 Speaker 2: Okay, so critics said, a, you could be taxing gains 113 00:05:58,800 --> 00:06:03,000 Speaker 2: that haven't been realized and be because of inflation. More 114 00:06:03,040 --> 00:06:05,320 Speaker 2: people could be caught up in these laws than perhaps 115 00:06:05,360 --> 00:06:09,760 Speaker 2: originally intended. Exactly that criticism was leveled quite loudly. I 116 00:06:09,760 --> 00:06:12,560 Speaker 2: remember we covered at the time what does the government 117 00:06:12,760 --> 00:06:13,880 Speaker 2: said in response to this? 118 00:06:14,200 --> 00:06:16,720 Speaker 1: So they've taken all that criticism on board, they've gone 119 00:06:16,760 --> 00:06:18,760 Speaker 1: away and they've come back with a new proposal that 120 00:06:18,800 --> 00:06:23,640 Speaker 1: was announced by Treasurer Jim Chalmers, which has three major changes. First, 121 00:06:23,680 --> 00:06:27,160 Speaker 1: the unrealized gains issue is gone, so people will only 122 00:06:27,200 --> 00:06:31,560 Speaker 1: pay more tax on actual earnings. Secondly, the thresholds will 123 00:06:31,560 --> 00:06:35,279 Speaker 1: now move with inflation, so the same small portion of 124 00:06:35,320 --> 00:06:39,520 Speaker 1: the wealthiest Australians will be affected over time without disproportionately 125 00:06:39,560 --> 00:06:42,880 Speaker 1: affecting ordinary Aussies. And the third is that there are 126 00:06:42,920 --> 00:06:47,080 Speaker 1: now two tiers, so balances between three million dollars and 127 00:06:47,320 --> 00:06:50,840 Speaker 1: ten million dollars will have the earnings taxed at thirty percent, 128 00:06:51,120 --> 00:06:54,120 Speaker 1: but anything above ten million dollars will be taxed at 129 00:06:54,120 --> 00:06:56,920 Speaker 1: a higher level at forty percent, so that is new. 130 00:06:57,160 --> 00:07:00,120 Speaker 1: Around eighty to ninety thousand Australians will be impact to 131 00:07:00,240 --> 00:07:04,279 Speaker 1: buy that first tier, and only around eight thousand by 132 00:07:04,360 --> 00:07:05,960 Speaker 1: that second forty percent tier. 133 00:07:06,240 --> 00:07:09,800 Speaker 2: Okay, so we're not talking huge numbers here exactly. It 134 00:07:09,880 --> 00:07:12,800 Speaker 2: has dominated quite a lot of political discussion, so it's 135 00:07:12,880 --> 00:07:16,240 Speaker 2: very interesting to unpack. I do want to then move 136 00:07:16,360 --> 00:07:19,600 Speaker 2: to the other part of the new cycle this weekend, 137 00:07:19,720 --> 00:07:22,080 Speaker 2: but before then, let's pause and hear a quick word 138 00:07:22,120 --> 00:07:28,160 Speaker 2: from today's sponsor. And those are the super changes that 139 00:07:28,240 --> 00:07:32,880 Speaker 2: have passed Parliament. But there's also been a separate conversation. 140 00:07:33,240 --> 00:07:37,960 Speaker 2: We covered this in this week's Finance newsletter, which if 141 00:07:37,960 --> 00:07:40,360 Speaker 2: you're not subscribed to you should. We'll throw it link 142 00:07:40,400 --> 00:07:43,960 Speaker 2: in today's show notes. But we spoke about capital gains tax, 143 00:07:44,120 --> 00:07:46,640 Speaker 2: which I know it can feel like quite a daunting 144 00:07:47,160 --> 00:07:51,280 Speaker 2: topic because it's very confusing. What do we need to 145 00:07:51,320 --> 00:07:53,280 Speaker 2: know about that about cgto. 146 00:07:52,880 --> 00:07:55,440 Speaker 1: Okay, so I want to flag up front that the 147 00:07:55,600 --> 00:07:58,640 Speaker 1: change that we're going to discuss hasn't actually been confirmed, 148 00:07:58,680 --> 00:08:02,240 Speaker 1: so a Senate can he handed down a significant report 149 00:08:02,280 --> 00:08:05,400 Speaker 1: this week. The Treasurer hasn't ruled out on acting on 150 00:08:05,440 --> 00:08:08,040 Speaker 1: it in the main budget, and a lot of reporting 151 00:08:08,280 --> 00:08:11,720 Speaker 1: implies that Charmers will act on it in the upcoming budget. 152 00:08:11,760 --> 00:08:14,480 Speaker 1: But we're drawing on that report and reporting on other 153 00:08:14,480 --> 00:08:18,400 Speaker 1: outlets and sources inside government. But until Chalmers confirms anything, 154 00:08:19,080 --> 00:08:22,559 Speaker 1: treat this as strongly signaled, not a one hundred percent 155 00:08:22,560 --> 00:08:22,960 Speaker 1: short thing. 156 00:08:23,120 --> 00:08:25,080 Speaker 2: And this was but and I know we haven't actually 157 00:08:25,120 --> 00:08:26,960 Speaker 2: spoken about what was in it yet, but this was 158 00:08:27,120 --> 00:08:31,440 Speaker 2: led by a Greens member who chaired that and there 159 00:08:31,440 --> 00:08:35,040 Speaker 2: were both Liberal and Labor members on that committee. So 160 00:08:35,480 --> 00:08:38,520 Speaker 2: it's I believe the Liberal party did hand down a 161 00:08:38,520 --> 00:08:41,280 Speaker 2: dissenting report, so they disagreed with it. Yes, but I 162 00:08:41,320 --> 00:08:43,520 Speaker 2: mean the idea is that people from across this political 163 00:08:43,520 --> 00:08:45,200 Speaker 2: spectrum have thought about this. 164 00:08:45,320 --> 00:08:48,920 Speaker 1: Yeah, the majority of the committee sided with the final report, 165 00:08:48,960 --> 00:08:51,600 Speaker 1: which we will get into shortly. But in terms of 166 00:08:51,600 --> 00:08:54,240 Speaker 1: what you need to know about the capital gains tax discount, 167 00:08:54,920 --> 00:08:57,559 Speaker 1: bear with me. Let's say you buy a house for 168 00:08:57,679 --> 00:09:02,720 Speaker 1: one thousand dollars, completely unrealistic that in Sydney. But in 169 00:09:02,760 --> 00:09:05,640 Speaker 1: the name of simple maths, bear with me and pretend 170 00:09:05,679 --> 00:09:07,640 Speaker 1: that you can indeed buy a house for a thousand dollars. 171 00:09:07,800 --> 00:09:10,440 Speaker 1: I like this game, you sell it later, for two 172 00:09:10,480 --> 00:09:13,800 Speaker 1: thousand dollars, you've made a one thousand dollar profit. That 173 00:09:14,040 --> 00:09:16,800 Speaker 1: is called a capital gain. Now, if you owned that 174 00:09:16,880 --> 00:09:19,959 Speaker 1: house for at least twelve months before selling it, you 175 00:09:20,040 --> 00:09:23,839 Speaker 1: get what's known as the capital gains tax discount. For 176 00:09:24,120 --> 00:09:27,679 Speaker 1: most Australian residents, that discount is fifty percent. Now, that 177 00:09:27,760 --> 00:09:30,320 Speaker 1: doesn't mean you pay fifty percent tax. It means that 178 00:09:30,440 --> 00:09:34,199 Speaker 1: only half your profit is counted towards your tax bill. 179 00:09:34,559 --> 00:09:38,200 Speaker 2: Gotcha. So the profit is what we're focusing on here, 180 00:09:38,440 --> 00:09:41,400 Speaker 2: and because there's a discount, only half of it is 181 00:09:41,440 --> 00:09:42,000 Speaker 2: being taxed. 182 00:09:42,080 --> 00:09:45,200 Speaker 1: Yeah, so a thousand dollar profit, only five hundred dollars 183 00:09:45,240 --> 00:09:48,000 Speaker 1: of it is taxed. Now, if you're in the top 184 00:09:48,080 --> 00:09:51,480 Speaker 1: income tax bracket, where the government takes forty five cents 185 00:09:51,520 --> 00:09:54,360 Speaker 1: for every dollar you earn, you would pay forty five 186 00:09:54,360 --> 00:09:58,240 Speaker 1: percent on five hundred dollars, not one thousand, So quick maths, 187 00:09:58,320 --> 00:10:02,040 Speaker 1: that's about two hundred ear dollars. Ten percent of the 188 00:10:02,080 --> 00:10:06,640 Speaker 1: wealthiest Australians actually receive about eighty percent of the tax 189 00:10:06,720 --> 00:10:11,200 Speaker 1: benefits from that concession. So it's a significant saving that 190 00:10:11,400 --> 00:10:16,840 Speaker 1: is overwhelmingly being taken up by the highest earners in Australia, 191 00:10:17,000 --> 00:10:19,160 Speaker 1: and it should be noted that this tax discount doesn't 192 00:10:19,160 --> 00:10:23,080 Speaker 1: just apply to property. It can be applied on assets shares, 193 00:10:23,360 --> 00:10:25,520 Speaker 1: but it is the property angle that has drawn the 194 00:10:25,559 --> 00:10:26,200 Speaker 1: most attention. 195 00:10:26,800 --> 00:10:29,120 Speaker 2: What are the origins of this discount? What was it 196 00:10:29,240 --> 00:10:30,280 Speaker 2: intended to do? 197 00:10:30,600 --> 00:10:33,679 Speaker 1: This is actually from the Howard government. So Prime Minister 198 00:10:33,760 --> 00:10:37,640 Speaker 1: John Howard introduced in nineteen ninety nine this fifty percent 199 00:10:38,240 --> 00:10:42,120 Speaker 1: capital gains tax discount basically to encourage more Australians to 200 00:10:42,280 --> 00:10:46,480 Speaker 1: invest and to invest in real estate and other areas. 201 00:10:46,520 --> 00:10:48,880 Speaker 1: As I mentioned now. At the time, the argument was 202 00:10:48,920 --> 00:10:52,120 Speaker 1: that without this discount, the tax hit from selling an 203 00:10:52,160 --> 00:10:54,360 Speaker 1: asset basically meant it wouldn't be worth it, That it 204 00:10:54,360 --> 00:10:57,080 Speaker 1: wouldn't be worth it for investors in the first place. 205 00:10:57,160 --> 00:10:58,600 Speaker 2: To try to invest. 206 00:10:58,800 --> 00:11:02,400 Speaker 1: Gotcha, okay, and those in favor of this discount basically 207 00:11:02,400 --> 00:11:05,520 Speaker 1: make the same argument today. The Property Council of Australia, 208 00:11:05,559 --> 00:11:09,880 Speaker 1: for instance, argues that reducing the discount won't improve housing affordability, 209 00:11:10,040 --> 00:11:12,199 Speaker 1: that it will take investors out of the housing market 210 00:11:12,240 --> 00:11:14,600 Speaker 1: and it could actually lead to fewer homes being built 211 00:11:14,960 --> 00:11:15,800 Speaker 1: and higher rents. 212 00:11:16,160 --> 00:11:19,959 Speaker 2: Okay, So its intended use was to make it easier 213 00:11:20,320 --> 00:11:24,480 Speaker 2: to buy and sell homes for investors. What has been 214 00:11:24,480 --> 00:11:26,839 Speaker 2: the reason that they're now interrogating how that's looking. You 215 00:11:26,880 --> 00:11:28,720 Speaker 2: said a bit earlier that we are looking at the 216 00:11:28,760 --> 00:11:32,080 Speaker 2: top tax bracket mostly using this is that the concern here. 217 00:11:32,360 --> 00:11:34,600 Speaker 1: Yes, So this Senate committee that we've touched on a 218 00:11:34,640 --> 00:11:37,360 Speaker 1: little bit, which was chaired by Green Senator Nick McKim 219 00:11:37,679 --> 00:11:41,200 Speaker 1: it included liberal and labor senators, found that the capital 220 00:11:41,200 --> 00:11:44,840 Speaker 1: gains tax discount has, together with negative gearing a separate 221 00:11:44,840 --> 00:11:49,120 Speaker 1: tax concession for another day, quote, skewed the ownership of 222 00:11:49,160 --> 00:11:53,600 Speaker 1: housing away from owner occupiers and towards investors, and flagged 223 00:11:53,640 --> 00:11:56,640 Speaker 1: that it could be contributing to intergenerational inequality, which we 224 00:11:56,679 --> 00:11:59,599 Speaker 1: hear so much about when we're talking about property ownership, 225 00:12:00,040 --> 00:12:03,760 Speaker 1: basically meaning that younger Australians have lost out because of 226 00:12:03,800 --> 00:12:08,800 Speaker 1: this discount and its favorability to wealthier Australians. But as 227 00:12:08,840 --> 00:12:12,200 Speaker 1: you did say correctly earlier, Zara, Liberal senators on the 228 00:12:12,240 --> 00:12:15,800 Speaker 1: committee did disagree with the findings. They called them quote 229 00:12:15,800 --> 00:12:20,320 Speaker 1: simplistic and argue that supply housing supply is the real 230 00:12:20,440 --> 00:12:22,840 Speaker 1: issue and the real driver of the housing crisis. 231 00:12:23,240 --> 00:12:26,120 Speaker 2: Okay, So the Senate committee has made recommendations to the 232 00:12:26,160 --> 00:12:32,000 Speaker 2: government about changing or removing that CGT discount. We don't 233 00:12:32,080 --> 00:12:34,320 Speaker 2: know how the government will respond. At the time of recording, 234 00:12:34,360 --> 00:12:37,640 Speaker 2: they haven't responded. We can expect that before the May 235 00:12:37,720 --> 00:12:42,280 Speaker 2: budget most likely. One thing I am curious about and 236 00:12:42,320 --> 00:12:46,480 Speaker 2: I guess for anyone who remembers the twenty nineteen federal election, 237 00:12:47,080 --> 00:12:50,080 Speaker 2: there was a lot of talk about capital gains tax 238 00:12:50,080 --> 00:12:54,040 Speaker 2: and negative gearing and oftentimes it is chalked up as 239 00:12:54,120 --> 00:12:56,560 Speaker 2: one of the reasons why Labor lost the election, which 240 00:12:56,600 --> 00:12:59,920 Speaker 2: they took policies to that election that were deemed unpopular 241 00:13:00,120 --> 00:13:04,240 Speaker 2: the Australian public. I am interested why Labor is considering 242 00:13:04,360 --> 00:13:07,760 Speaker 2: capital gains tax changes now what's changed? 243 00:13:07,960 --> 00:13:11,520 Speaker 1: Well, you're absolutely right, that is the twenty nineteen election loss. 244 00:13:11,640 --> 00:13:14,240 Speaker 1: Kind of big conversation point. You can't talk about that 245 00:13:14,280 --> 00:13:17,360 Speaker 1: loss without talking about those policies. But we're in a 246 00:13:17,520 --> 00:13:21,719 Speaker 1: very different political landscape. Things have shifted dramatically for the 247 00:13:21,800 --> 00:13:25,439 Speaker 1: Labor Party and also for the coalition. So Labour won 248 00:13:25,480 --> 00:13:29,960 Speaker 1: the last election with an historic majority. The opposition's polling 249 00:13:30,240 --> 00:13:33,680 Speaker 1: meantime is at historic lows. So you have this argument 250 00:13:33,720 --> 00:13:36,800 Speaker 1: being made that Labour now has such a secure runway 251 00:13:36,960 --> 00:13:39,360 Speaker 1: to secure the next election. You know, according to some 252 00:13:39,800 --> 00:13:44,160 Speaker 1: many political commentators, and that means that they maybe have 253 00:13:44,320 --> 00:13:45,920 Speaker 1: a bit more confidence or a bit more of a 254 00:13:45,960 --> 00:13:50,560 Speaker 1: willingness to push through these historically more contentious policy areas 255 00:13:51,000 --> 00:13:56,320 Speaker 1: because they have such a comprehensive leadership and majority in 256 00:13:56,480 --> 00:13:57,760 Speaker 1: the House of Representatives. 257 00:13:58,120 --> 00:14:00,760 Speaker 2: Yeah, and look, I don't often find myself about tax 258 00:14:00,800 --> 00:14:03,640 Speaker 2: but I have also seen a lot of headlines. Independent 259 00:14:04,040 --> 00:14:08,760 Speaker 2: MP Aleegora Spender wrote a white paper about tax reform, 260 00:14:08,880 --> 00:14:10,840 Speaker 2: and I know that there were changes to do with 261 00:14:10,920 --> 00:14:13,800 Speaker 2: CGT in there. So there's a lot of different pressure 262 00:14:13,800 --> 00:14:17,120 Speaker 2: points now on the government to do something here. Yes, 263 00:14:17,360 --> 00:14:19,480 Speaker 2: but of course we knew how unpopular it was back 264 00:14:19,480 --> 00:14:22,120 Speaker 2: in twenty nineteen. So really interesting. I guess to see 265 00:14:22,120 --> 00:14:25,680 Speaker 2: what will happen now. Has the Australian public changed that dramatically. 266 00:14:25,760 --> 00:14:26,720 Speaker 2: We'll have to wait and see. 267 00:14:26,840 --> 00:14:29,880 Speaker 1: And these reforms are not popular with the coalition, it 268 00:14:29,920 --> 00:14:32,440 Speaker 1: should be noted, but we now have a strong presence 269 00:14:32,480 --> 00:14:35,440 Speaker 1: of independence. We have the Greens and other minor parties 270 00:14:35,440 --> 00:14:38,160 Speaker 1: who do support these kinds of reforms and who say 271 00:14:38,160 --> 00:14:39,720 Speaker 1: that they have been a long time coming. 272 00:14:39,960 --> 00:14:43,440 Speaker 2: Yeah. Interesting. Now am just to finish up with what 273 00:14:43,480 --> 00:14:45,960 Speaker 2: are the next steps when it comes to both of 274 00:14:45,960 --> 00:14:48,560 Speaker 2: these things. You said, the super changes have already been 275 00:14:48,600 --> 00:14:51,240 Speaker 2: pushed through Parliament, yet CGT hasn't. 276 00:14:51,320 --> 00:14:53,920 Speaker 1: What happens now, The super reforms will come into effect 277 00:14:53,960 --> 00:14:56,840 Speaker 1: on the first of July, so that's when anyone with 278 00:14:56,960 --> 00:14:59,600 Speaker 1: a superbalance of above three million dollars will start being 279 00:14:59,640 --> 00:15:02,320 Speaker 1: taxed their earnings of those higher thresholds thirty percent or 280 00:15:02,360 --> 00:15:05,640 Speaker 1: forty percent, depending on their balance on the CGT discount. 281 00:15:05,800 --> 00:15:08,600 Speaker 1: We are basically waiting and watching for the May budget. 282 00:15:08,720 --> 00:15:11,880 Speaker 1: So the federal budget handed down in the middle of May, 283 00:15:12,160 --> 00:15:15,040 Speaker 1: and that will probably give us more information or you know, 284 00:15:15,120 --> 00:15:18,080 Speaker 1: charmers may start bread crumbing, for lack of a better word, 285 00:15:18,400 --> 00:15:23,040 Speaker 1: the policy there over our gaming weeks, Yes exactly. Shadow 286 00:15:23,040 --> 00:15:26,920 Speaker 1: Treasurer Tet O'Brien has indicated the Coalition won't support any 287 00:15:27,000 --> 00:15:30,400 Speaker 1: changes to capital gains tax discounts, so the government will 288 00:15:30,440 --> 00:15:33,240 Speaker 1: need as we flagged the Greens or cross benches, but 289 00:15:33,320 --> 00:15:36,280 Speaker 1: there's certainly momentum there. Many of them have been super 290 00:15:36,360 --> 00:15:38,480 Speaker 1: vocal about wanting exactly this kind of thing. 291 00:15:38,840 --> 00:15:41,040 Speaker 2: Yeah, look and very interesting stuff and I know it 292 00:15:41,080 --> 00:15:43,800 Speaker 2: can be complex, So if anyone listening has any questions, 293 00:15:43,880 --> 00:15:45,880 Speaker 2: you can ask us. If you're on Spotify. There's a 294 00:15:46,040 --> 00:15:47,640 Speaker 2: Q and a section there, and we'll try to get 295 00:15:47,640 --> 00:15:49,760 Speaker 2: back to as many of you as possible. But thank 296 00:15:49,760 --> 00:15:52,120 Speaker 2: you for taking us through that. Thank you, thank you 297 00:15:52,200 --> 00:15:54,640 Speaker 2: for joining us for today's episode of The Daily Ours 298 00:15:54,720 --> 00:15:57,040 Speaker 2: will of course be back later today with the headlines, 299 00:15:57,080 --> 00:16:03,120 Speaker 2: but until then, have a great day. My name is 300 00:16:03,120 --> 00:16:06,600 Speaker 2: Lily Maddon and I'm a proud Arunda Bunjelung Kalkudin woman 301 00:16:06,680 --> 00:16:10,960 Speaker 2: from Gadighl Country. The Daily oz acknowledges that this podcast 302 00:16:11,120 --> 00:16:13,360 Speaker 2: is recorded on the lands of the Gadighl people and 303 00:16:13,440 --> 00:16:16,960 Speaker 2: pays respect to all Aboriginal and torrest Rate island and nations. 304 00:16:17,280 --> 00:16:20,200 Speaker 2: We pay our respects to the first peoples of these countries, 305 00:16:20,320 --> 00:16:21,520 Speaker 2: both past and present.