Young investors call out budget tax changes | The Business | ABC NEWS
The federal government said the budget measures were designed to make the tax system fairer, improve housing affordability and help younger Australians into the property market. Under the reforms, the current 50 per cent capital gains tax discount for assets held longer than a year will be scrapped from July 2027. Only real gains above inflation will be taxed, at a minimum rate of 30 per cent. Gains accrued prior to that date will stay under the current system. The changes impact all assets including shares, exchange traded funds (ETFs), cryptocurrency like Bitcoin, property and discretionary trusts. The treasurer rejects criticism the changes unfairly punish young investors. He said rentvestors make up a small proportion of people under the age of 35.
Negative gearing will be restricted to new builds, but existing property investments will be exempt from the changes. Helen Hodgson, an adjunct professor of tax at Curtin University, said the reforms were one part of making the system fairer by narrowing the gap between how income from work and income from investments are taxed. Matt Nolan, a senior research manager at e61, said his bigger concern was the way long-term capital gains are taxed all at once, even if they build up over many years.
Treasury analysis suggests young investors are not the main beneficiaries of the current capital gains tax discount, which shows the benefits skew mainly towards older Australians.
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Read more here: https://www.abc.net.au/news/2026-05-19/young-investors-feel-budget-cgt-change-impact-on-etfs-rentvest/106693292
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