Carrington Clarke

But I think the view was that the result from Commonwealth Bank disappointed.

Their earnings weren't as high as people were expecting them to be.

But also the question about what the taxation changes announced by the federal government would mean for the property market in particular and what it would mean for Commonwealth Bank

the biggest player when it comes to home loans, has more than a quarter of the investor mortgage market, that this would also hurt its future earnings.

We don't usually see big hits like this to big companies like the Commonwealth Bank, do we, Dan?

What did you make of the investor response?

So according to the Treasury modelling, they expect the taxation changes will lead to dwelling prices growing 2% less

per year than what they would otherwise grow.

So the example they used in the documents was instead of growing at 6%, they would grow at 4% now.

And they say that's a modest change.

And it means that it'll be slightly more affordable for first home buyers to get into the market.

And this is where we get this 75,000

properties will basically be transferred from investors to first home buyers.

Now, I think first of all, the example of, well, you can understand that people wouldn't get too upset if house prices are growing at 4% instead of 6%.

I think it gets a more complicated picture if you're in a downturn and instead of falling by 5%, it falls by 7%, for example.

But I think people are concerned that there is actually maybe more speculation going in the property market than even the treasury modeling allows for.

And as you say, the psychology is so important here.

And that if people have been, and we saw the data out yesterday from the ABS showing an increasing share of investors in that market taking out home loans, they've been piling back in into housing in recent years, whether or not there's going to be a major shift and that's going to make it more difficult for the Commonwealth Bank.

It should also be pointed out that there was this update about its own performance, more provisioning for bad debts.

It was a pretty gloomy view of the economy, an increasingly gloomy view given that we have had a continued interruption of the supply of oil because the Strait of Hormuz is still closed.