00:01The Federal Government says it wants to improve fairness between generations, and we've heard
00:06the Prime Minister and the Treasurer talk a lot about that over recent weeks.
00:11They're really leaning into this issue of young Australians finding it nearly impossible
00:16to get into the housing market, and certainly when we do speak to people right around the
00:21country, you know, we hear stories about people just giving up hope on being able to save
00:26what they need for a deposit or being able to service the loans.
00:29They go to inspections, they're outbid by other investors, or, you know, there are dozens
00:35of other people at auctions and things like that.
00:37So you hear those stories all the time.
00:39The government says that problem has gotten worse over recent years, and it wants to use
00:44this budget to improve equity between the generations.
00:49And so what we can report this morning is that in next Tuesday's budget, there will be changes
00:54to negative gearing and the capital gains tax discount, because the way they're saying
00:59set at the moment is they really do provide incentives to investors.
01:04So it seems by moving on this, the government is trying to improve, I guess, the chance of
01:11a first home buyer to be able to compete with investors.
01:14But look, especially on negative gearing, it would amount to a broken promise for the Prime
01:19Minister.
01:20He did rule that out during the election campaign last year.
01:24So we're really starting to see that messaging changing.
01:27The Treasurer yesterday was asked about this.
01:29He said the best way to build trust is by making the right decision at the right time.
01:35But as expected, the opposition is quick to criticise this.
01:39We heard from Jonathan Duniam this morning saying it will really undercut trust.
01:44And also pointing out that by taking away some of these incentives for investors, it could
01:50end up hurting the rental market.
01:52Now, some of the finer details about the changes to negative gearing trust capital gains, they
01:58will be part of the budget next week, you know, such as if there's carve-outs and things
02:02like that.
02:02So there still is more detail to come in this space, Gemma.
02:05And Evelyn, the government has announced that it is winding back the popular fringe benefits
02:09tax exemption for electric vehicles.
02:11How will that work?
02:13Yeah, essentially this is a tax benefit to people who buy a car through a novated lease,
02:20so through like a salary sacrificing package through their workplace.
02:23But what's happened here is it's become so popular that it's costing the government so
02:28much more than it expected, 10 times more than it was forecast.
02:33So the government is looking to progressively wind that back.
02:37It'll begin not till April next year.
02:40And first off, cars that are above $75,000, not cars that are sort of tagged as luxury,
02:47they're different.
02:48But EVs I'm talking about here above $75,000, they won't get as generous a tax benefit.
02:55And then after two years' time, so once we get to 2029, it'll be all cars in that EV space,
03:03again, through the novated lease, through the salary sacrificing.
03:07So Energy Minister Chris Bowen says that he doesn't expect it will, you know, really take
03:12a big hit on electric vehicle purchases.
03:14He still wants that to continue, but he says this is a sensible measure to sort of keep
03:19those incentives on the table to try and get more people to buy EVs.
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