00:01For some young Aussies like Brodie, who can't afford to buy where they want to live, they
00:07buy investment properties somewhere else.
00:10The only reason I was able to do it, I was even able to get into the market at such
00:15a
00:15young age, was purely because of negative gearing.
00:18That's now been wound back to new builds, but existing properties won't be affected.
00:24It's just getting harder and harder for anyone who wants to, any young person who wants to
00:29get ahead.
00:29Daniel Woodcock has been trying to get ahead by investing in shares through ETFs.
00:35He says the government's plan for a minimum tax on real capital gains instead of the 50%
00:41discount will hit him hard.
00:43It's 30%, which is quite a big difference, especially if you're only pulling out a small
00:48amount to live in the future.
00:50Jim Chalmers rejects criticism that the changes unfairly punish young investors.
00:55Treasury analysis suggests that they are not the main beneficiaries of the current capital
01:01gains tax discount, which shows the benefits mainly skewed towards older Australians.
01:07The whole point of having a capital gains tax is to tax income that's earned through the
01:14appreciation of capital.
01:15And when it was discounted, it didn't really reflect a fairness.
01:20So people who earned their money from investments were paying lower rates of tax than people who
01:25were earning them in the labour market.
01:27But the devil is in the details.
01:29There are certain ways that the current policy works where it will overtax people who are earning
01:34capital income.
01:35Brodie and Daniel say they want to be doing what previous generations have done – building
01:40financial security over time.
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