CGT backflip, migration falls, scathing audit of Snowy Hydro, Swiss watch slump
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What is the main topic discussed in this episode?
Welcome to Fear and Greed, business news you can use.
What controversial tax changes did the federal government backflip on?
Today, the federal government backflips on part of its controversial tax changes. Migration levels in Australia drop and the world of Swiss watches is being hit by the Middle East conflict. Plus, a Victorian suburb takes the title of richest postcode in the country for the first time and the National Auditor provides a scathing report of the progress of the snowy hydro scheme.
How have migration levels in Australia changed recently?
It is Friday the 19th of June 2026. I'm Michael Thompson and goodbye. Morning, Sean Aylmer. Good morning, Michael. End of the week, but it is not slowing down, is it? There's some big stories today.
What did the national auditor report about the Snowy Hydro scheme?
Yeah, it's a great day for news. Yeah, certainly is. The main story this morning, the big one, the federal government has announced a partial back down on its capital gains tax changes, granting $475 million worth of concessions to small business, start-ups and testamentary trusts. Now, Prime Minister Anthony Albanese and Treasurer Jim Chalmers... held a press conference yesterday and announced that 2.7 million small businesses turning over up to $10 million would be eligible for a 50% concession on capital gains tax when their owners sold active assets that is up from the existing $2 million revenue threshold.
Which Victorian suburb is now the richest postcode in Australia?
While it is a back down, yes, the new rules are still a tightening of the legislation as it currently stands.
Yes. So that was small business capital gains tax.
Yes.
They also, to head off a death tax campaign, said that testamentary trusts used to bequeath assets to beneficiaries are to be typically exempted from the minimum 30% tax on discretionary trust distributions.
How is the Swiss watch industry affected by the Middle East conflict?
There are around 10,500 discretionary testamentary trusts in Australia. It means that they won't be hit by the new rules. Also, Labor will allow startups that meet an innovative business definition to retain the 50% capital gains tax discount for owners and employees with shares in the businesses and to opt out of the inflation indexation capital gains tax model that effectively could increase tax gains at about 47%, basically. So they've dropped that as well.
What are the implications of the audit findings on the Snowy Hydro project?
The PM said the changes were examples of Labor backing Australian small businesses and the important role they play in Australia. There is no change to the proposed rules for the property sector.
Now, this is a win for small business. It's also a win really for the opponents of the government's changes. It comes after a two-day Senate hearing into the proposals.
What economic factors are influencing migration trends in Australia?
The Prime Minister yesterday was a little bit coy really about whether the back down was in response to the criticism of last month's budget and the fact that the ALP has actually lost ground in the polls since then. One Nation, and we've talked about this throughout the week, One Nation, according to some polls, is now the most popular political party in Australia. And look, you would have to think that yesterday's announcement is at least a little bit political, right?
Yeah, I mean, I don't think it would have happened without the backlash. Business groups, including the Australian Chamber of Commerce and Industry and COSBOA, the small business organisation, welcomed the changes, though they did say they didn't go far enough. It isn't huge in terms of dollars. So of the $8.1 billion, the negative gearing, capital gains tax and trust tax changes were supposed to raise over the forward estimates. The cost is about $475 million. So, I mean, it sounds like a lot of money, but it doesn't make that much difference. So clearly there are still a lot of people who are going to be worse off as a result of the changes. Where the debate is very pointed now isn't so much around housing.
Broadly, people agree that owner-occupiers need some help. It's around passive and active investing and how they're treated. And so the argument is there should be a focus on incentivizing risk-taking. So for an example, if you spend $100,000 to start up a new business, you might employ someone, you buy some equipment, you're really adding economic growth. Should that be rewarded or treated the same as someone spending $100,000 in bank shares?
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:06–0:08
2
What controversial tax changes did the federal government backflip on?
0:08–0:31
3
How have migration levels in Australia changed recently?
0:31–0:42
4
What did the national auditor report about the Snowy Hydro scheme?
0:42–1:21
5
Which Victorian suburb is now the richest postcode in Australia?
1:21–1:48
6
How is the Swiss watch industry affected by the Middle East conflict?
1:48–2:15
7
What are the implications of the audit findings on the Snowy Hydro project?
2:15–2:37
8
What economic factors are influencing migration trends in Australia?
2:37–15:35
Speakers
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