Stephen Mayne

Come home to roost, but by then, you know, they might have been long gone with your loot sort of thing.

Probably should go straight to Mark.

Yeah, your turn.

Yeah, Mark says the proposed changes limiting negative gearing and CGT concessions to new homes have a massive blind spot.

They destroy the secondary market.

If concessions only apply to new builds, the next buyer gets zero tax benefit with no incentive for a subsequent buyer.

The resale market evaporates.

Look, that's an interesting point, Alan, isn't it, that...

So, you know, Harry Triggerboff's very excited about, you know, buy my apartments off the plan, get your negative gearing.

But then if you've bought that and then you go to sell it six months later.

Who's the buyer?

Because all those investors are no longer in the market as buyers.

So you've only got the first home buyer.

So you can just imagine people excitedly buying an apartment off the plan for $900,000, looking forward to the depreciation schedule on the carpets and the curtains and everything else.

And then they go to sell it in a year or two's time and they top a capital loss of $150,000 or something.

That's the whole point.

And negative gearing, particularly on new builds, it does encourage holding for five to ten years because it takes that long to really –

Work through all the depreciation and get your tax down.

So you're really doing it when you're in your maximum wage earning years and you're sick of paying 80 grand to the government and you only want to pay them 60 grand.

And so you just do the negative gearing through those high paying years.