Budget Reforms: A Mixed Bag for Housing & Startups

The recent budget changes, particularly to negative gearing and capital gains tax, have sparked debate about their impact on rents and young peoples ability to enter the housing market. However, these changes may not significantly affect rents, as investing in existing homes doesnt increase the housing supply. Additionally, the claim that these tax shifts will hurt young people through rent-vesting is questioned, as the majority of young people still build their deposits through saving, not tax breaks. The new capital gains tax rules may unfairly impact small business owners and employees who take equity, and the new minimum tax on certain trusts is not a hidden death tax, as it only applies to new discretionary trusts. Overall, these budget reforms are a step forward for the tax system, despite not being as comprehensive as past overhauls. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/93226d83bb101888