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Australians are continuing to digest the impact of the proposed tax changes in the federal budget. The government says the reforms are about making the tax system fairer and helping first home buyers compete with investors. But some younger Aussies are torn about the government's changes.

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00:01They're worried about these changes just as they say they have been using the existing
00:08system to build plans to try and secure their future.
00:13So as we know when we talk about capital gains tax changes, that 50% discount will be abolished
00:20from July next year and replaced with cost-based indexation.
00:25So that means that any gains you make on these investments will be adjusted for inflation.
00:32But keep in mind any gains made even between now and July next year still falls under the
00:38existing system.
00:39For example, I did speak with a 28-year-old high school teacher by the name of Vanessa.
00:46She said that she had been investing in exchange-traded funds or ETFs since she was 18 years old.
00:55And, you know, she believes that overall these reforms are a step in the right direction.
01:02But she has concerns because many of these high-growth ETFs as well as crypto, they can often or they
01:12can sometimes provide gains that are much bigger than inflation.
01:16The government, and we did hear Jim Chalmers, the Treasurer, talking earlier today as well,
01:23keen to emphasise that they believe these new rules will make things fairer, that basically
01:29taxed, that the gains are taxed on real gains rather than this broad 50% discount as well.
01:36But the young investors that I've been speaking to certainly, they're worried and they want,
01:41and they're trying to figure out sort of what are the next steps, whether they should be
01:44changing their plans going forward.
01:47So rentvestors are also impacted, first of all, what are rentvestors and what changes
01:52can they expect?
01:54Yeah, indeed.
01:54So a rentvestor is basically somebody that decides to rent in a place they choose or because of
02:02work and by somewhere else and that somewhere.
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