Vince Scully

Clearly, if borrowing volume... Shivers.

It's down...

10.3.

Wow.

So if the ability to lend falls... I might text Matt, see what he thinks about it.

Mr. Common, sorry.

That's obviously going to impact their profitability, given that the vast bulk of their revenue comes from home loans.

There's also the potential argument that, yeah, mum and dad investors who held it for a long time might want to bank the capital gain.

Yes.

All right, so today, if you hold an asset for more than 12 months, you pay tax on half of your gain.

So if you make...

hundred thousand dollar gain you divide it by two and then add that to your income and pay tax on that that was brought in to replace a indexation to inflation so the theory with capital gains tax is that you don't want to be taxed as a philosophical point you don't want to tax people on gains that are there just because of inflation so the whole point about the original

indexation was to get rid of inflation.

Peter Costello simplified that when inflation was much higher than it is today with a 50% reduction.

And as inflation has come down, despite this recent flip up, that's got out of whack.

So the proposal is that from July, 2027,

gains will be looked at relative to the inflation adjusted price.

So if you paid a million dollars, inflation was 3%, well now you're only gonna get taxed on gains over a million and 30,000.

And that's not a million miles difference.

If you look at Sydney's 40 year house price growth of about 5.8%, average inflation of 2.7, 2.8.