Steph Chalmers

And there was a quote to that effect in the budget about

this improving the efficiency of investment.

So trying to stop people making investment decisions based on tax treatment and make it more for economic reasons, one of which would be, you know, the inherent value of that investment.

So I think that is where we'll see this play out for investors and in the

not just CGT, its changes itself and how they apply to shares.

You know, you've also got the negative gearing changes that being scrapped for future investment properties.

So I think overall, really the aim of this budget and what it will probably achieve, you know, slowly and incrementally is making property slightly less attractive.

So then we should see people looking to other sorts of investments probably.

Yeah, so the numbers they've come to through their modelling and have included in the budget paper is seeing prices grow by around 2% less over a couple of years relative to if they hadn't done this policy change with negative gearing and capital gains tax.

So I guess, you know, it's not saying house prices are going to drop dramatically.

It's kind of saying...

they're going to grow 2% less if we were kind of, depending on other conditions in the housing market, if we were saying prices weren't going to grow, maybe they will fall slightly.

So it's a modest impact there.

And as you say, we've had think tanks like the Grattan Institute model this in the past.

The general vibe of that was around 1% to 4% cooling in house prices compared to how it would have been.

So yeah, the 2% kind of doesn't sound outlandish compared to some of the modelling we've seen over the years

because this has obviously been discussed for a number of years.

And there was also some stats in there around rent.

They said Treasury expects an increase of less than $2 a week for households paying the median rent due to these changes.

Yeah, exactly.