Vince Scully

And when it eventually distributes by dividend, it comes out with a credit for that 30%.

Whereas now, if you had a trust generate income, distributing it to a company, trust pays 30%, company pays 30% and doesn't get a credit for that 30.

So there's now effectively 60% tax paid.

When it pays a dividend, it...

it'll come with a franking credit of 30 cents.

And so if the recipient is a top rate taxpayer, there's now 77% tax paid on that income.

So that's a bigger, that effectively kills the bucket company strategy.

I mean, you're obviously not going to get the indexation in a bond, but it means that...

the loss is much different.

So you'll find that if you have a investment where you have half or more of the return coming by way of income, an investment bond is now a much more attractive option than it used to be.

So we'll see a lot of changes around how people structure companies and businesses.

And there are a bunch of transition provisions that allow you to restructure without triggering various taxes.

How that works with StampG, that could be a very interesting exercise.

But I think what does this do?

It encourages people to invest in new property from a tax perspective, and that's where

the impact on house prices comes from.

So the broad thing is the tax now makes investing in property less attractive, people can borrow less, house prices rise less, fewer investors competing for existing stock, and those investors will be more likely to choose new properties, which may encourage more properties to come out of the ground.

The treasury modeling in the budget suggests that it should reduce house price growth by 2%.

So if it was otherwise gonna go up by 6%, it should now go up by 4%.

So these are modest gains, but we should take every win we can.