30% CGT Floor: Why Labor’s Budget Changes Matter

Labor’s capital gains tax changes are being sold as reform, but the data points to a much bigger issue: when you tax gains harder and make the rules harder to explain, capital responds. In this video, we unpack why that matters for Australian property investors and why professional advice becomes even more important. Key data points: • The 50% CGT discount is gone, replaced with cost-based indexation plus a 30% minimum tax floor on gains. • Claire Lehman argues Labor’s budget CGT changes mirror the playbook France ran in 2012 before a decade of stagnation. • Our advised clients recorded 18.6% a year rolling five-year capital growth versus 6.3% for the combined capitals over the same period. • $288 million in client wealth was created in this five-year rolling period across 1,350 properties. • One example showed Sally paying more tax than Jane purely because her ride was bumpier, despite the same profit and cost base. • France’s effective capital gains tax rate reached 60% under its 2012 changes, before policy was walked back. What this means for you: the headline isn’t the whole story. If tax settings change, the winners are usually the investors who already have the data, structure and asset selection right — which is exactly where a buyers agent and property advisory team can help. If you want to go deeper, book a Discovery Call with Ripehouse Advisory: {{DISCOVERY_CALL_URL}} or explore our research at {{WEBSITE_URL}}. Subscribe for more data-led Australian property analysis and market commentary. #AustralianProperty #PropertyInvesting #CapitalGainsTax #BuyersAgent #PropertyMarketAustralia #RipehouseAdvisory This video is general information only and not financial or investment advice. Consider your own circumstances and seek professional advice.

This article here went viral over the weekend. 800 plus comments on the Australian. Are we less pigeons now? French slang for the suckers. Claire Lehman's argument Labor's budget CGT changes are the exact playbook France ran in 2012 right before a decade of stagnation Followed. I'm a property guy. I read the data for a living and I think she's right and it's actually worse than she says So give me a few minutes to discuss What Changed from 1st of July 2027 the 50% CGT discount is gone Replaced with cost based indexation plus a 30% minimum tax floor on gains regardless of income This is old news You know the budgets now weeks old months old a retiree Selling shares to cover medical bills pays a 30% floor and when that bar on the Sunrise Show on the night on the seven network Asked the treasurer on Sunrise who'd be better off under the new system. He couldn't name one example Seven weeks after the budget professional economists still can't explain the rule simply that's not reform That's a tax grab wearing a lab coat Here's the thing through every policy panic of the last decade the data kept doing this our advised clients Eighteen point six percent a year rolling five-year capital growth versus six point three percent for the combined capitals over the same period 288 million in client wealth created in this five-year rolling period some of these properties are only Being purchased in the last month or two across thirteen hundred and fifty properties property has survived worst governments than this This example comes from Derek Francis former chief economist of the New South Wales Parliamentary budget office office he called the budget a dog's breakfast Jane and celery Sally So each make exactly sixteen hundred and sixteen thousand five hundred profit on four shares Allocated identical cost base identical holding holding period Sally pays more tax purely because her ride was bumpier Why gains get indexation in index for inflation losses don't? I'll just read that again because it needs to sink in gains get indexed for inflation Losses don't a coin toss where the ATO always wins the system literally takes taxes risk-taking itself in an economy starving for productivity and investment So the biggest mistake is acting on a headline instead of data. We put the five markets We are watching in the numbers behind each into one free report grab it at right dot house dash five slash markets and finally October 2012 Halaan socialist government tries taxing capital gains as income founders face 60% as effective tax rate The lost pigeons revolt walks forces are walked back by this government in France within days But capital had already got the message France today Debt above a hundred and thirteen percent of GDP the largest deficit in the EU Was CGT the only cause no, but when you tell capital it's the enemy Capital leaves, and it doesn't send a postcard labors already blinking to Startup carve out small business concessions lifted from two million to ten million revenue when a government starts Hand-picking exemptions, it's already conceded its critics point