Ian Verrender

And what the original plan was, well, look,

You're going to pay tax on the capital gain, on the profit you've made on your property or on your shares or whatever.

But what we'll do is we'll take into account inflation and we'll reduce the amount of profit that you've made.

We'll take inflation out of that.

Now, that was changed to if you hold the property for more than 12 months, you get an automatic 50% discount.

Now, is that fair?

Well, you know, what about if somebody who's owned a property for 25, 30 years as a rental property?

They're only going to get the 50% discount, but as opposed to somebody who's bought one for 12 months.

So that really did add into the equation, make it, well, it made it far more attractive for people to put their money into property.

to basically buy houses and bid up the price of houses.

Now, if these changes are announced in the budget on Tuesday, and we expect that they will be, is that going to result in a big drop in property prices?

Probably not.

These things take years to filter through.

That's right.

So, I mean, it's really a change for the future and it'll be a gradual change.

I mean, I thought the 2019 proposition, which was to essentially only have negative gearing on new builds, new properties, was a good idea because what that would do would be to encourage investors into putting money into new houses.

increasing the supply.

And I think the prime minister has already announced that he, you know, we heard him just this morning say, well, what we need is we're a government that believes in extra supply, right?

So that's, you can see that where that's heading.

So it's a double whammy, really.