Gemma Mitchell

It's really the only reason that you would be doing something.

Yes, I think it's very important because people are going to be hearing lots of words thrown around, even budget, negative gearing, grandfathering.

So I thought it would be a great place just to start with really the basics.

So what is the budget?

To make more or less money to make it fairer or for the government to make more money?

And that's when they go into... Deficit.

Yeah.

That would be great if we could do that.

So it's a plan.

It's a plan on how they plan to make money and then how they plan to bring in that money and then how they plan to distribute that money.

A lot of the policies are designed to ensure that the government gets re-elected.

Yes.

The budget plan on how to bring in money and to spend money.

Next one, negative gearing.

This is one that we're hearing a lot and we're going to answer, you know, what are the changes and things in the questions that are coming up, but what is negative gearing?

Does that make sense?

Yeah.

And so what happens there is that the loss that what you were out of pocket in that example, the $1,000 a month, because you've saved some tax, that's propping up the loss.

So that's bridging some of the gap.

So what generally happens is at the end of the year, you do your tax return and you put in, well, I was out of pocket this much from what my investment did and the cost of me to hold that investment.