James Thomson

But I think this is still a pretty big moment.

Nicol's right.

It's the biggest housing correction in 40 years.

This is the end of what Morgan Stanley calls the 30-year housing super cycle, which has been built on tax breaks that the budget is attacking, and it's been built on cheap credit.

That era appears to be gone.

Inflation's sticky.

Interest rates are going to remain high.

So this is a big change for Australia, I think.

House prices are a national obsession, and you can understand that this change is just starting to filter through the market, I think.

Anthony, I went to a big business function on Monday night and there was real frustration still about the budget there.

Did you sense the same at the AFR's Director Awards this week?

And what do you think's keeping the budget, you know, top of mind for business people?

Why is it still so red hot?

Yes, true.

I agree with you, Anthony, but I think people are starting to realise, oh, what comes next?

What's the next arm of prosperity in this country?

And I think that's the bit where business people particularly are asking some pretty good questions.

Okay, we're a high-tax nation, very high income tax rates, very high capital gains tax rates now.

I think people could cop that if it was offset by a big program that drives productivity and economic dynamism and growth.

But there's none of that.