Matthew Harris

So rent increases...

changes in market behaviour so hoarding properties not selling that sort of stuff yeah correct and I've also like here I've said often many times what happened if private landlords what happens if private landlords leave the market who fills that gap were they were they able to use those tax losses twice like were they able to go okay I'm going to take that

I know that they did and I think it still remains they have some CGT discounts.

It's pretty limited.

So we've used a little bit of jargon, but ring fencing is a pretty simple way of saying it's ring fence back.

About the property.

About property only, correct.

Yeah, which is, if you think about it, that's a huge increase in your effective rate of tax.

And I think that's a big one because when I look at capital growth assets, they're things that you buy, that you're putting away the wealth and gain for another time, a rainy day.

And owning them, especially with ring fencing, comes at a cost, an economic cost.

And then outside of that, the point of buying assets is that they appreciate and value over time.

So when you now, if you think about the thought or decision matrix as investors enter into buying assets, they not only have to pick one that's going to hopefully perform well, they have to find one that has enough cash flow so they can afford to hold it for the long term, and they need to be able to manage the outcome of the imposter tax.

And I like that word, impost, because the government is imposing a far higher rate of tax on them.

They have to manage that well into the future in order to get the financial outcomes that they're seeking.

And James will know this, when you're dealing with people in retirement, sometimes there's only enough cash to go around.

And that is effectively taking money out of future Australians' pockets.

Yeah, that's right.

So it's called grandfathering.

It's actually pretty common when they change tax rules.

And what it means is that they have a cutoff date and it's usually