Stephen Knight

I'm your host, Stephen Knight.

And this is the show that helps Kiwis go from zero to five investment properties so you can be financially free and stick around for the next 15 minutes because you're going to learn how Australia just doubled its capital gains tax and what it means for Kiwi investors, the fishhooks that mean you could pay this extra tax even if you're a Kiwi, and could this spread to New Zealand?

Now, Australia has just made the biggest changes to property investor taxes in third

years.

But what's really changed?

Well, the Australians are getting rid of both negative gearing and increasing their capital gains tax.

Now, even if you've never bought an investment property in Australia, these changes still matter.

Now, let's talk about what's changing, Andrew.

Start with the capital gains tax, because the Australians had quite

quite a unique way of taxing your capital gains.

So basically, if your tax rate on your income was lower than that, let's say it was 20%, well, you'd still pay a minimum of 30%.

So even if you're a low income earner, you could pay an outsized amount of your income on this capital gains tax.

Interestingly, this only applies to new purchases after July 2027.

So you could still be buying up a storm of Australian property up until that date, because anything before that is still under the old rules.

And I think that's why when I've been scrolling on my Instagram, looking at my favorite Australian financial creators, there's this wonderful trend at the moment where people are posting

photos with Anthony Albanese, the Prime Minister of Australia, announcing that he's their new business partner because he's going to take potentially, call it half the gains without taking any of the risk.

So the Australian government's going to effectively be your new business partner.

But that inflation indexation is really interesting in terms of how it works.

So

In Andrew's example before, you sold a property for 700K that you bought for 500K, you paid 47 grand.