Ian Verrinder

But when it comes to property, the idea is that now, from now on, it's going to revert back to that Keating-era regime where you will pay tax, but only on the gains that you've made after inflation.

Look, I think it's a step in the right direction and it will start to work, but it's not going to work next week or next year.

It'll probably start to have an impact the further out it goes from the changes.

You know, you're essentially clawing back money from investors.

So I think it's going to take a while for us to see any real impact.

I mean, the property market is turning down at the moment anyway, because we've had three rate hikes recently.

In the past three months.

So, you know, both Sydney and Melbourne housing prices have turned south.

Other capital cities are still, you know, still growing, but you'll probably see the national housing market start to weaken quite a bit over the next six months to a year.

But that's primarily because prices are already so high and you've got much higher interest rates.

Yeah.

Look, these are quite significant changes.

The way a family trust works is that you've got a family that earns a lot of money and this is a way of distributing that cash to all members of the family or beneficiaries in a very tax effective way.

From what I've been told, you need to have around about $300,000 a year in income to

to make this work effectively.

And I think there's people with a lot more money and a lot more income who engage in this kind of practice.

Now, it comes in in 2028, so quite a way off yet before it's introduced.

And in its first year of operation, of the change, it would appear that around about...

$4.47 billion is delivered into the government's coffers.

That's a lot of money, which makes it look a lot bigger than the changes to capital gains tax and to negative gearing, at least in terms of government income.