‘Making more’: why young people will keep investing
Holly Nebauer waits for a call from a real estate agent while her three-year-old daughter, Indy, plays on her ankles.
The 31-year-old man and his fiancee are hoping to secure their forever home in Bungendore, about 40 kilometers outside Canberra.
This will be the third property the couple has purchased since 2020, having sold their first. They expect their current home to be offered for sale soon.
Their first home, a two-bedroom, two-bathroom townhouse in Canberra’s north, cost $466,000 at the start of the pandemic and sold for almost $200,000 a year and a half later.
Ms. Nebauer says she invested in the stock market as a way to buy property and is now coaching her younger sister to do the same, despite federal budget changes and negative gearing on the capital gains tax.
The flat 50 per cent deduction on capital gains will be abolished from July 2027 and replaced with an indexed, inflation-based deduction with a minimum tax of 30 per cent.
The Albanian government was criticized for not fulfilling its election promises with the changes.
The decision to include investments, not just housing, surprised Ms. Nebauer.
“But we knew as a society that something had to change,” he told AAP.
“I imagine if I kept all my money in the bank, I would still make more from my investments.”
Brendan Malone, chief executive of investment firm Raiz, said the government’s proposed changes would allow young Australians to earn money if they do not panic and consider changing their investments.
He expects more activity in dividend-paying stocks, which are likely to outperform high-growth stocks. They may even outperform the previous discount.
“No matter what the market does, being in the market will put you in a much better position over time,” Mr. Malone says.
But this is a sentiment at odds with what coalition politicians believe.
Shadow treasurer Tim Wilson will outline his response to Labour’s “malicious budget” in a speech to the National Press Club on Wednesday.
He will say, “Where we should have been united, we inflamed the fights against the Prime Minister at the kitchen tables of the nation.”
“And where we should have found a path for growth, we ended up with policies of redistribution and resentment.”
Mr Wilson will promise to consult on the Small Business Act, the four pillars of the coalition.
This includes a single definition for small business and a provision that any new law requires a regulatory impact statement for small business to provide an avenue for feedback.
“We will replace Labor pessimism with Liberal optimism,” he will say.
“A country where taxpayers are respected, hard work pays off and Australians feel in control of their lives.”
National leader Matt Canavan will also speak, arguing at the Rural Press Club that the government’s new tax regulations are a “fundamental violation” of Australia’s rights given the Albanian government’s reversal of election promises.
“The Labor Party has no authority over these taxes. For that reason alone, they should be opposed in parliament,” he will say.
