Labor wins Greens support for tax changes; KPMG scandal escalates; SpaceX tumbles
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Welcome to Fear and Greed, business news you can use. Today, the federal government wins green support for its capital gains tax and negative gearing changes. Iron ore prices fall to their lowest level in three months and the KPMG scandal claims two more scalps. Plus, WiseTech Global denies allegations that CEO Richard White exploited a woman's immigration status and financial insecurity for sex. And SpaceX's share price tumbles. It is Wednesday, the 24th of June, 2026. I'm Michael Thompson, and good morning, Sean Aylmer. Good morning, Michael. Sean, the main story this morning, the federal government has agreed to demand by the Greens to ban self-managed super funds from borrowing to purchase residential properties and avoid the capital gains tax increase.
What tax changes did the federal government achieve with Greens support?
It'll also postpone by two months the passage of the legislation to reform the NDIS. And in return, the Greens will support the ALP's capital gains tax and negative gearing changes in the Senate in January. their entirety.
Yes, a win for the government. Since 2011, self-managed super funds have had an exemption allowing them to borrow to purchase housing. The SMSF sector will still be able to purchase housing.
How are iron ore prices affecting the mining sector?
You can still buy a house in your SMSF. You just won't be able to borrow to do it. An inquiry into the federal government's proposed overhaul of the National Disability Insurance Scheme has now been extended by eight weeks as part of this deal. A new reporting date of August 14. It means that legislation, which is expected to reduce the cost of the NDIS by almost $10 billion each year for the next four years. will be delayed. The government didn't give in to the Greens other key demand to soften the provisions that grandfather or exempt existing properties that are already negatively geared. Prime Minister Anthony Albanese yesterday said the reforms will make it easier for Australians to buy their first home, cut taxes for over 13 million workers and better align the tax treatment of labour and asset income.
All right, let's recap because this has been really quite a barney now for weeks and weeks. In the May budget, Labor abolished the Howard government era 50% capital gains tax discount for all investments, right? So the discount will be replaced by a less generous version of the hawk government's model that taxed real gains after taking into account inflation costs over the life of the asset. Have I got that right so far? Yep, you're right so far.
I'm with you. Okay. Pretty good. There's one other part though. Go on.
The Albanese charmers model, though, will have a 30% minimum capital gains tax rate. Is that? Yeah.
Yes.
That's it in a nutshell.
Yeah, so you're going to pay at least 30% and negative gearing has been dropped. Now, there were other changes last week, including lifting from $2 million to $10 million, the turnover threshold under which a business would be eligible for an extra 50% capital gains tax discount. There's also more generous provisions for small businesses considered innovative. And in yesterday's show, we had the discussion whether a hairdresser who creates a new hairstyle, is that innovation? Hmm. Could be. It's all getting a bit complicated, I agree. But the bottom line in all this, the government will be able to pass its legislation. And if you have an SMSF in the future, so it's not retrospective, but from now, in the future, you won't be able to borrow money to buy property.
But a win for Anthony Albanese and Jim Chalmers. Yeah, big changes. But as you say, it is a win for the government.
Now, the local share market closed down 0.3% yesterday to 8,787 points. The market opened higher and on a pretty volatile day, trended lower for most of the session. All eyes, though, Sean, are on today's May inflation figures.
Yeah, so it was definitely a down day. The best performer was Telix Pharmaceuticals, and it was up 2.7, 2.8%. I don't think there's many days where the best performer is only up that much. The tech stocks performed worst. Xero and Technology One, both were down sharply. Most of the mining stocks were lower, led by the gold diggers.
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