Ian Verrinder

And they, you know, they were soundly defeated and,

which you would have thought would have given them a message that, you know, this is just not on.

Dump it, don't ever go near it again.

And the Treasurer has decided to reintroduce it at this budget.

Well, for negative gearing, investors can still buy property, but they will only really be able to get negatively geared, which is essentially being able to write off the losses on that property.

So that's when your rental income doesn't cover the interest bill.

So if you're earning $250,000 a year and you're losing $60,000 or $70,000 a year on your investment property, you can use that $70,000 to write off against your taxable income from your job.

Essentially, you can only do that now if you buy a new property.

So the idea behind that is you won't be out there competing against first home buyers for existing properties.

You'll be putting your money into an investment that is a brand new build.

So that will add to supply.

Okay, so the people that are doing it... It doesn't come in for another 12 months.

Capital gains tax was introduced by Paul Geeting.

And essentially his idea was you only paid the capital gains tax on the profit you made after inflation.

So the real profit that you've made.

That was changed in 1999 by the Howard government to basically have a 50% write-off.

on your gain.

So if you made a million dollars profit from a property sale, you only paid tax on half of that, on 500,000, which seems to be incredibly generous.

And you only had to have the property for 12 months.

Now, it applies for not just property, but for all assets, including shares.