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 so that means that any gains you
00:28make on these investments will be adjusted for inflation but keep in mind any gains made
00:34even between now and July next year still falls under the existing system.
00:40For 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
00:55old and she believes that overall these reforms are a step in the right direction but she
01:03has 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.
01:17The government and we did hear Jim Chalmers the treasurer talking earlier today as well
01:22are keen to emphasize 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 and
01:42they're trying to figure out sort of what are the next steps whether they should be changing
01:45their plans going forward.
01:46And I've been speaking with a number of young rent investors and basically what they've said to me is
01:53that they feel the changes put them in the same basket as an investor and that's not what they are.
02:00That they were forced into rent vesting because of housing unaffordability.
02:06For example I spoke to a rent investor based in Sydney by the name of Darcy.
02:10He said that it was his only way to get into the housing market he bought in a regional
02:18Queensland and he was so worried he said that because he had seen these prices climbing that
02:23if he didn't get in early enough that he wouldn't be able to get in at all.
02:28But you know keep in mind of course Jim Chalmers has said that you know when we think about the
02:33negative gearing changes that they don't impact new builds so rent vesting is still a possibility
02:39for them.
02:40And he was also keen to emphasise that when we think about this cohort it's a small portion
02:46of people under the age of 35.
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