James Gruber

Tech stocks continue to drive US shares to repeated records.

While our share market is also heading for a positive open.

Good morning, I'm James Gruber.

And I'm Gillian Bowen.

The ASX to open lower after last night's ambitious federal budget.

US markets mixed after hotter than expected inflation.

And why Australia has some of the highest mortgage rates in the developed world.

Hello, good morning.

I'm James Gruber.

It's Wednesday, the 13th of May.

And this is the morning edition of the ComSec Market Update.

Well, this morning is all about the federal budget handed down by the government last night.

There weren't too many surprises after much of it was leaked in the weeks before.

Here are some of the budget's key headlines.

Negative gearing for new buyers will be restricted to new homes from 2027-28 onwards.

For established homes, losses can be used to offset other property income and carried forward.

The 50% capital gains tax discount will be replaced by the taxation of real gains from 2027-28 for all assets, with a likely exception for tech and start-ups purchased from now, and will face a minimum tax rate of 30%.

CGT on existing assets will be assessed using a proportionate mix of the old and new tax models based on holding years.

There'll also be a minimum tax on discretionary trust distributions of 30%.

And there'll also be a phased reduction of the EV fringe benefit tax break.