Stephen Knight

Now, one other thing that I've been thinking about with the two-tier system in terms of this capital gains tax is that there will likely be a lock-in effect.

Just walk everyone through how that works.

And a good example is, let's say you owned a property and you were trying to transfer from a growth to a yield strategy.

Typically, you'd say, well, I don't need that property anymore, the growth property.

Let me sell that, release that to the market.

I'll go buy something that suits my needs.

But now you might not do that and you might hold on to that property that might not suit

what your strategy now usually would be, which would be going towards something that's higher yielding, but you decide to continue holding onto it to avoid that tax.

That is typically what we see when capital gains taxes like this get introduced, because people are not dumb.

They decide to work within the rules, making the rational decision for them, which just means that it's not what they would usually do in the past, right?

Taxes change the incentives.

2028 is when they're expecting to have the next one.

So after this new policy comes in, we'll see if the Liberal Party comes out

and tries to argue against this or say that they'll repeal it.

The other thing with this policy is that I don't think it will mean that people move away from property and decide to invest more in shares or decide to invest more in growing a business because all assets are taxed the same way under this proposal.

This isn't an anti-property policy.

It is more a revenue generating policy for the Australian government.

And over the last 15 minutes, you've learned 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 whether this could spread to New Zealand.

Right, let's wrap it up there.