James Kirby

And number two, negative gearing, again, threatened for a long time, is now restricted only to new properties.

So would you say that they were really the worst hit sort of segment of investors?

So one of the things you said at the very start was that it's going to change the game, basically, because capital gain is going to be taxed more heavily than it used to be.

So if you think about a property investor, they have two things going on when you buy an investment property.

You're going to try and get income from the rent.

And obviously, ultimately, you want to make a profit in capital gain.

And the tax on capital gain is now higher than it used to be and will be going forward, which means the emphasis perhaps changes on in the market to rentals.

What might that mean for the shape of the market, Will?

What might it mean for the investment property market as we know it?

Do you think people will end up, do you think listeners on the show, individual investors will end up competing with corporate owners more often where it'd be more advantageous to be a big company owning residential properties?

Right.

One thing I wanted to make clear, folks, was this capital gains tax measure, which is coming down the line where it's just adjusted for inflation every year.

A surprise part of the budget was that there is a minimum that you must pay of CGT of 30%.

This has been introduced.

This is a sting in the tail.

It means there's no way around it.

People might say, oh, I can get around that, I can get around this.

That's gone to some degree because the government has used this idea of introducing a minimum rate

Very clever, and it's going to be a big thing both in property and in shares.

But just to finish on property, Will, so if there is this double disincentive, if you like, on property now, where negative gearing, you can only do it for new properties, do you think anybody will say, do you think any listeners would be rewarded if they said, okay, well, you can still negatively gear new properties, why don't I get in that way?