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BONUS: The 2026 Federal Budget Explained Without The Boring Bits · She's On The Money

0:00
Victoria Devine: Hello, my friends, am welcome to She's on the Money.
0:02
Victoria Devine: I am Victoria Devine, and around here we are all
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Speaker 2: She's on the Money, She's on the Money.
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Victoria Devine: My name's Satasha Bamblet.
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0:53
Victoria Devine: Hello, and welcome to a very special bonus episode if
0:56
Victoria Devine: She's on the Money. We're today our good friend Glenn James, Money, Money, Money,
1:01
Victoria Devine: and Vince from Retire Right and I got the privilege
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Victoria Devine: to dive headfirst into the federal budget ahead of the masses,
1:08
Victoria Devine: so that you absolutely do not have to read four
1:10
Victoria Devine: hundred pages of economic jargon and tiny little footnotes pretending
1:14
Victoria Devine: to be as excited as we are. We are currently
1:17
Victoria Devine: recording this from inside the budget locker because the budget
1:20
Victoria Devine: hasn't been released to the public yet, which honestly feels
1:24
Victoria Devine: like being maybe trapped in a very intense group assignment
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Victoria Devine: with Australia's political journalists, economists and people who say the
1:31
Victoria Devine: word productivity recreationally. Now, if you've ever watched the budget
1:36
Victoria Devine: coverage before and thought beautiful, what does this actually mean
1:40
Victoria Devine: for me? My friends? This is the episode for you,
1:44
Victoria Devine: because today we are just talking about what has been announced.
1:47
Victoria Devine: We're going to break down everything in plain English. We're
1:50
Victoria Devine: going to talk about who benefits, who doesn't, and what
1:53
Victoria Devine: maybe feels like has been forgotten. We're also going to
1:56
Victoria Devine: talk about whether any of this is genuinely going to
1:59
Victoria Devine: make life feel alay little bit more affordable for Australians.
2:03
Victoria Devine: So this evening, let's unpack what matters, what's political theater,
2:06
Victoria Devine: what's genuinely interesting, and what our community actually needs to know.
2:11
Victoria Devine: Let's keep this in mind as well, Glennie James, We've
2:14
Victoria Devine: only had an hour to unpack this before we jumped
2:17
Victoria Devine: into a press conference how to chat with the treasurer
2:20
Victoria Devine: and Katie Gallaher. So these are just our initial reactions
2:23
Victoria Devine: in commentary.
2:24
Glen: Right Yo. So I don't know how we're going to
2:26
Glen: do this VD, but we probably should say high to
2:30
Glen: Vince Scully from Retire right.
2:32
Vince: Yes, that's me, Vince Scully from Retire podcast. And this
2:38
Vince: is an exciting day.
2:40
Victoria Devine: We are all really excited. Ye we were saying and
2:43
Victoria Devine: I keep saying that, but genuinely, this is kind of
2:45
Victoria Devine: like our super Bowl. It is exciting because it's all
2:48
Victoria Devine: the stuff that we talk about all the time, Like
2:50
Victoria Devine: it is, you know, cost of living, it's childcare, it's
2:53
Victoria Devine: women's financial security, and for me, all of this is
2:55
Victoria Devine: just what's going to move the dial, hopefully in the
2:58
Victoria Devine: right way for the next twelve months.
3:00
Glen: Yeah.
3:00
Victoria Devine: And I think there's a lot weighing on it this year.
3:03
Vince: Yeah.
3:03
Glen: I mean, gosh, and I think VD, like we've done
3:06
Glen: a lot of joint episodes together. Vince Gully actually licenses
3:10
Glen: us so.
3:12
Vince: To IM going to jail.
3:14
Glen: But we're calling Vince our real time historian and fact
3:18
Glen: checker and potentially having a look at what could matter
3:23
Glen: to people who are a bit more senior mature I
3:27
Glen: think is the Yeah, as we were saying, I'm not
3:31
Glen: going to say it.
3:33
Vince: I'm used to being the token boomer.
3:34
Victoria Devine: Yeah, I think it's helpful.
3:37
Glen: What's everyone's we Honestly, guys, I don't know how we're
3:40
Glen: going to do this chat. We know that Katie is
3:42
Glen: going to be in here soon. We'll have a chat
3:43
Glen: with her.
3:44
Vince: So what's the assistant treasurer of Katie Calla who's.
3:46
Victoria Devine: Joined Minister Minister of Finance, Minister of Women Malino is
3:51
Victoria Devine: the assistant treasurer?
3:52
Glen: Well, I don't know. I'll throw to v D what
3:55
Glen: what are your takes? High level comments on the budget?
3:59
Victoria Devine: So I'm let's be honest straight out the gates. I'm
4:02
Victoria Devine: really disappointed. I think that we expected a lot when
4:07
Victoria Devine: it came to first home Buyer Support, we expected a
4:11
Victoria Devine: lot more when it came to CGT, and for me,
4:14
Victoria Devine: I was hoping that there would be a bit more
4:16
Victoria Devine: for the NDIS and I understand how the budget works,
4:20
Victoria Devine: but I just expected there to be a bit more.
4:22
Victoria Devine: I was also a bit disappointed that when we got
4:25
Victoria Devine: given the budget. So for those of you who maybe
4:27
Victoria Devine: aren't as excited about this, the budget is a physical
4:29
Victoria Devine: document for us, but they also this year handed around
4:32
Victoria Devine: a USB and we all uploaded it to our computers
4:37
Victoria Devine: and I did a little bit of a control f
4:39
Victoria Devine: to see if single households had been taken into consideration.
4:45
Victoria Devine: And there's not one mention in the budget of single women,
4:48
Victoria Devine: single people and how they're going to be supported. A
4:51
Victoria Devine: lot I suppose around single parents and Centralink and oh
4:57
Victoria Devine: what is it? That's what I'm looking for, child support,
5:02
Victoria Devine: CHI child support and making sure that that gets paid,
5:05
Victoria Devine: which is fantastic, But I think, you know, coming into
5:08
Victoria Devine: a world where there are lots of single income households,
5:12
Victoria Devine: and there are lots of people in my community specifically
5:15
Victoria Devine: who are actively choosing to remain single, how are we
5:19
Victoria Devine: going to do it? I feel like there's not a
5:21
Victoria Devine: lot in there.
5:22
Glen: Yeah, my initial take coming in and what I do
5:25
Glen: I walk in. The first thing I do, open up
5:27
Glen: the speech, have a scam skim through just to see
5:31
Glen: what they kind of wanted to sell. But probably more
5:35
Glen: so was what we just experienced in Jim's press conference,
5:41
Glen: where he's like, this budget is about first home buyers.
5:43
Glen: And one thing I noticed that we talked about in
5:46
Glen: his speech was talking about the five percent deposit.
5:48
Victoria Devine: Scheme that we already knew about it.
5:51
Glen: So I think there's a bit of politics. And we
5:54
Glen: won't say who it was. But I was sitting next
5:56
Glen: to a church journal, you know, and into myself as
6:00
Glen: one of those pesky influences that he may have had
6:03
Glen: a run at. And we had a good chat, and
6:05
Glen: he was actually saying to me, because this is a
6:08
Glen: big deal budget right, literally broken promises like we're not
6:16
Glen: going to touch negative gearing or CGT. That's saying that's
6:20
Glen: not saying whether we should or not, that's just saying,
6:22
Glen: in twelve months time, we've got no real reason to
6:26
Glen: touch this.
6:27
Vince: It's what you call a courageous decision, minister.
6:30
Glen: Yes, But what the journal was saying, he goes, this
6:34
Glen: is a very interesting press conference. They were ten minutes late.
6:37
Glen: They talked for over twenty five minutes they did which
6:41
Glen: just shared everything that we previously just read and only
6:45
Glen: took five or six questions.
6:47
Victoria Devine: Six questions from journals, and they didn't let them expand
6:50
Victoria Devine: on it. And then they marched straight.
6:51
Glen: Out and I leant over and I said to him,
6:54
Glen: I'm like, is this like actually political calculated? Speaking of
6:59
Glen: Oh Katie, he's in the house and we'll get Vince's
7:03
Glen: take after Katie. So, do you want to jump up? Vince?
7:07
Victoria Devine: Come in hell loong. Oh, I'm so sorry, but I
7:11
Victoria Devine: felt like that might be a little bit too much. Yeah, so, hell,
7:19
Victoria Devine: I don't even have my phone to show you a photo.
7:21
Victoria Devine: I'm so sorry.
7:25
Glen: How long are you with us? Fifteen minutes?
7:27
Katy: Yeah?
7:28
Glen: I think, yeah, cool, we are rolling, by the.
7:31
Victoria Devine: Way you tell us when this is started?
7:35
Glen: Well with me?
7:35
Speaker 7: Gang?
7:36
Victoria Devine: Oh god, No, that's okay, that's okay. We just stoked
7:39
Victoria Devine: that we've managed to grab you, to grab you, pull
7:43
Victoria Devine: you into a studio on a day where you are
7:45
Victoria Devine: arguably one of the most popular women in the building.
7:48
Katy: I'll take that. I'm not sure it's true, but i'll
7:50
Katy: take it.
7:51
Victoria Devine: Oh, I know it's true.
7:52
Glen: We were just talking, minister. Yes, I was sitting next
7:57
Glen: to a a stalwart journalist in the gallery or wherever
8:04
Glen: the presser was. He's like, oh, they're ten minutes late,
8:09
Glen: talking for twenty five minutes, no time for questions. Was
8:12
Glen: that strategic because it was such a big, hard budget
8:16
Glen: to sell this year?
8:19
Katy: I think it's very similar to what we did last year.
8:21
Katy: We were a bit late, but we do a walk
8:23
Katy: through right here.
8:25
Glen: Maybe he was just grumpy.
8:27
Katy: I can't comment, no comment on that. But we did
8:31
Katy: a walk up through the press gallery. That takes to
8:34
Katy: go over now maybe an hour and a half. Okay,
8:36
Katy: we headed up here about two thirty and so we
8:38
Katy: were running a bit late for the presser.
8:41
Glen: But well, there's always more to the story.
8:43
Katy: And I think the other thing it is changing a little.
8:45
Katy: I think people like to keep their questions for their
8:47
Katy: individual interviews, sure, because I don't want to set it
8:50
Katy: all long.
8:51
Glen: All right, we'll call off the dogs then, yeah, try,
8:55
Glen: we'll try.
8:57
Victoria Devine: I'm going to dive straight in because I'm all about
8:59
Victoria Devine: women's empowerment and so are you, and I just I
9:02
Victoria Devine: think that this is such a juicy budget. And something
9:05
Victoria Devine: that we disclaimed before was Glenn and I have had
9:08
Victoria Devine: an hour to pour over this and like pull everything
9:10
Victoria Devine: out before we were like, no, we really want to
9:12
Victoria Devine: go to this.
9:12
Glen: PA, give us a full locker.
9:14
Victoria Devine: Oh no, no, we didn't get enough time, which is
9:17
Victoria Devine: so fine, so fine, but what do you think outside
9:22
Victoria Devine: of the budget while we've got you? Is the single
9:25
Victoria Devine: greatest economic issue that is currently facing women today.
9:31
Katy: Probably violence against women and children, because we know that
9:34
Katy: impacts on everything, every aspect of their life, their earnings,
9:38
Katy: their health, you know, they're housing everything. If we could
9:44
Katy: solve that in you know, like everyone would love to.
9:48
Katy: I think that would dramatically improve not only gender equality,
9:53
Katy: but economic empowerment of women. And that's why we're trying
9:56
Katy: to come at it. You know, we're trying to deal
9:58
Katy: with that. Obviously lots of funding going into women's safety,
10:03
Katy: but also come at it from the other way, which
10:05
Katy: is to make sure women are getting paid properly, to
10:07
Katy: look at how we're providing housing, to the women's health
10:10
Katy: initiatives that are rolling through. We are really trying to
10:14
Katy: come at driving economic independence through every lever available to us,
10:20
Katy: whether it's investments in early childcare, women's wages really important.
10:26
Katy: Like in the women's budget statement, it shows that we've
10:29
Katy: invested about twenty one billion dollars into age care and
10:32
Katy: early education care workers predominantly women workforce overwhelmingly. That's making
10:39
Katy: a huge difference.
10:40
Victoria Devine: And how do you think the budget is nailing that
10:43
Victoria Devine: this year?
10:45
Katy: So I guess, well, I guess partly the budget is
10:48
Katy: a sit You have to see the budget in a
10:50
Katy: series of investments, so you know, some of the things
10:53
Katy: that we did in women's health, for example, they've only
10:56
Katy: been their short term. They will continue to build over
10:59
Katy: the forward, so it's incremental and it's staged, so the
11:04
Katy: benefits continue to grow. And we know already how successful
11:08
Katy: the menopause and contracept in listing on the PBS has been.
11:13
Katy: We know hundreds of thousands of women are using those
11:17
Katy: now the benefit of that, So I would say there's
11:19
Katy: a bit of that in that we've made these investments
11:22
Katy: in previous years. They continue to flow through the big
11:25
Katy: focus we've got in this budget, not only tax I mean,
11:29
Katy: women will be the beneficiary of some of those changes
11:33
Katy: we've made, whether it be about in the Low Income
11:36
Katy: super Tax off set, the Medicare tax off set, all
11:39
Katy: of those because women tend to be earning lower amounts
11:43
Katy: and so they become the majority beneficiary there, but also
11:47
Katy: the WATO and those will help. And then we've got
11:51
Katy: our big focus on how we stop designing systems in
11:54
Katy: government that hurt women, Like there's quite a big investment
11:58
Katy: in trying to make the child support system work better,
12:02
Katy: and there's about almost five hundred thousand women and over
12:06
Katy: a million children who rely on that system, and we
12:08
Katy: need to make that better for.
12:10
Glen: Them any other question. And the reason I'll ask VD
12:15
Glen: if there's any other questions of similar nature.
12:18
Victoria Devine: Is because VD writes six million notes and when that.
12:21
Glen: Goes, seventy percent of my audience are women. Yeah, so
12:25
Glen: this is really important that you know, because.
12:28
Katy: I'm going to ask you literacy and stuff.
12:29
Glen: So yeah, it's just amazing. And I don't know what
12:32
Glen: it is whether guys is like you tell me the
12:35
Glen: next stock tip, so you just go on by stocks
12:38
Glen: bro or where women are women more open to, Like
12:41
Glen: I know, just explain how it works and I'll make
12:42
Glen: your own decision. I don't know.
12:44
Katy: It's so good. It's so good. I listened to both
12:47
Katy: of you, so that's I you know, it's a it's
12:50
Katy: just a great way to get information while you're walking driving.
12:55
Victoria Devine: Will treat people's lives with financial literacy.
12:58
Glen: Yeah, and these sort of interviews like I've really I'm
13:01
Glen: out of my depth, like I've got because I'm thinking
13:04
Glen: everyone and we will go back to VD, but every
13:08
Glen: one I'm thinking that interviews you and GM, Right, it's
13:12
Glen: almost like they're the expert and they're trying to got
13:16
Glen: you and all that, and like I'm a guy who
13:19
Glen: has a podcast in a shedding Newcastle. Like, so all
13:23
Glen: I can do is so my know my audience and
13:26
Glen: know what they want to know what my opinion is
13:30
Glen: on stuff. So I think just for the PSA for
13:33
Glen: my audiences, just have grace. If you want a full analysis,
13:37
Glen: go to ABC, the Guardian, the AFR where this is
13:40
Glen: broadly when I ask questions mainly of an opinion piece
13:44
Glen: of Glenn James. Yeah, because our audience values our opinion.
13:48
Victoria Devine: Right, yeah, And I guess it slightly different to that,
13:50
Victoria Devine: Like I didn't come in here today to be like
13:52
Victoria Devine: my audience values my opinion. I feel like I've got
13:56
Victoria Devine: the privilege of being the voice of my audience and
13:59
Victoria Devine: the privilege of sitting down with the Minister of Finance,
14:01
Victoria Devine: trusted voice.
14:02
Glen: That's absolutely and maybe I need to get out of
14:04
Glen: my head.
14:05
Victoria Devine: Maybe we need to be better journalists and get the
14:07
Victoria Devine: training so we can do the gotchas. But it's a
14:09
Victoria Devine: different kind of.
14:11
Katy: Role you play though, as you say, your your audience
14:14
Katy: loyal trust and they wanting what you think of things. Yeah,
14:19
Katy: so it's part information what you think and you know
14:22
Katy: some of the older media have a different it's a different.
14:25
Glen: So I'm like infotainment mainly on the tainment.
14:29
Victoria Devine: Like I'm on the info and finance. But let's get
14:34
Victoria Devine: back into it because I am conscious of time. A
14:37
Victoria Devine: few topics. I've got one spicy question for you, which
14:40
Victoria Devine: I don't think it's that spicy, but another just on
14:44
Victoria Devine: having a separate women's budget. When I took it to
14:47
Victoria Devine: my community and I said I'm going to get the
14:50
Victoria Devine: opportunity to sit down with Katie, what what would you ask?
14:54
Victoria Devine: One of the questions that I got was we understand
14:57
Victoria Devine: the logic of having a separate women's budget, really do,
15:01
Victoria Devine: but doesn't othering women from the general budget by not
15:06
Victoria Devine: having I guess a men's budget risk us continuously being
15:10
Victoria Devine: seen as you know, just having issues that are women's
15:13
Victoria Devine: business and making us look like still a segregated group
15:18
Victoria Devine: that don't need to be considered in the wider budget.
15:21
Victoria Devine: When I think you and I can actually agree that's
15:23
Victoria Devine: not the case.
15:24
Katy: Well, I would love to not having women's budget statement.
15:27
Katy: I think part of the reason the origins of it
15:30
Katy: is that, you know, if you look across housing, healthcare,
15:34
Katy: the care economy, more broadly, leadership, representation, decision making, violence
15:41
Katy: against women and children, there isn't a quality in this
15:44
Katy: country yet and so trying to part of the focus
15:47
Katy: of the Women's Budget Statement is to highlight that and
15:50
Katy: be mindful of government, you know, and government being accountable
15:54
Katy: for the decisions we make. To explain that, I think,
15:58
Katy: you know, we've got a special envoy for men's health
16:02
Katy: now I you know, playing a similar role because there's
16:05
Katy: areas of men's health in particular and other areas. But
16:08
Katy: in this instance, what DAN does is in men's health
16:11
Katy: where you know, it's not equal for them either, and
16:14
Katy: we're trying to kind of have responses to that. But
16:18
Katy: the Women's Budget Statement is partly because we've been trying
16:21
Katy: to drive equality. It's actually equality across the economy, and
16:26
Katy: at the moment in those key areas that I outlined,
16:29
Katy: we're not there yet. And if you take your like,
16:32
Katy: if you take your foot off the accelerator, you know,
16:36
Katy: if you're not dealing with some of these big structural
16:38
Katy: barriers that prevent women from actually being reaching equality, you know,
16:44
Katy: government decision making isn't informed by that. So it's actually
16:48
Katy: about keeping us accountable more than anything. The Women's Budget
16:51
Katy: Statement to make, you know, to explain what we're doing
16:54
Katy: and how we're tackling some of these big issues for women.
16:58
Victoria Devine: Yeah, not a spicy question, but more a personal view question.
17:04
Victoria Devine: Looking at the budget, what is something in there that
17:06
Victoria Devine: you're disappointed with?
17:08
Katy: Disappointed? Look, I mean you a budget is thousands of
17:14
Katy: literally thousands of decisions, and we've had to say no
17:17
Katy: to a lot of things in this budget, partly because
17:20
Katy: of the role you know, how seriously we take some
17:22
Katy: of the inflation challenge in the economy, partly because you know,
17:27
Katy: other things become more of a priority than others. So
17:30
Katy: dealing with fuel which sort of came out of their field.
17:35
Katy: And you know, when we started the budget wasn't a
17:38
Katy: thing and then has become one of the big things
17:40
Katy: in the budget. So it's rather than something specifically, it's
17:44
Katy: the amount. Like as finance minister, a lot of my
17:47
Katy: job is saying no, like the budget can't hold it,
17:49
Katy: we can't afford to do that, not this time, not now,
17:53
Katy: you know, come back and see me in a year,
17:55
Katy: that type of thing. And there's no shortage of meritorious ideas.
18:01
Katy: And as labor people, we like to you know, we
18:05
Katy: like to do things, we like to change things, we
18:07
Katy: like to make the life better for people, and so
18:11
Katy: sort of being in the position where you have to
18:13
Katy: you know, you're limited.
18:15
Victoria Devine: Yeah, it's kind I feel like that was noted in
18:18
Victoria Devine: the press conference a fair a few times. There was
18:21
Victoria Devine: a lot of we inherited a lot of issues, and
18:23
Victoria Devine: we're trying to fix these issues every government of course,
18:26
Victoria Devine: of course, but I guess worst case scenario for you
18:29
Victoria Devine: guys is that labor is wiped out next selection. If
18:32
Victoria Devine: you could only reform one social or economic issue between
18:35
Victoria Devine: now and then, what would it be.
18:37
Katy: I think if we get housing right, who would be
18:39
Katy: pretty good, pretty sweet, you know, And we're trying everything
18:43
Katy: we can on that. There's the tax changes obviously, the
18:46
Katy: supply dealing with you know, particular groups like women and
18:50
Katy: youth and things like that. That's a big I mean,
18:54
Katy: it's it's a in my time in politics, it's become
18:57
Katy: huge in terms of you know, how people experience it
19:01
Katy: or particularly you know, I've got a twenty eight year
19:03
Katy: old daughter. Her age group, like if you sit around
19:07
Katy: talking with her friends, unless they've been fortunate with their
19:10
Katy: parents and being able to kind of help them, that
19:13
Katy: generation kind of thinks, oh, that's not a thing to
19:16
Katy: owning a home. It's not a thing for us. I'm
19:19
Katy: kind of counted out, and so if we could get
19:21
Katy: if we actually deal with that, that will make a
19:24
Katy: huge difference.
19:25
Glen: I saw a theme from my audience asking, and I'm paraphrasing,
19:31
Glen: it's like the Boomer's got all this stuff. Now they're
19:35
Glen: pulling the ladder up behind them. So now the next
19:38
Glen: generation can't ride that wave of free growth. Almost any
19:44
Glen: response to pulling up the.
19:46
Katy: Ladder, Well, I could start a thing here about Generation
19:49
Katy: X and how we're like, yeah, the Sam, We're the
19:52
Katy: Sam poor Generation X. Something has I've not thought about,
19:58
Katy: but yeah, I mean my view on that is there.
20:02
Katy: You know, I don't want to see the boomers demonize, but.
20:06
Glen: It's even and sorry, it's really not the boomers per se.
20:11
Glen: I own a handful of properties nice. Yeah, like I'm
20:17
Glen: going to be effected by this, which I'll be fine.
20:20
Glen: So it probably isn't just the Boomers, it's everyone from now.
20:26
Katy: Yeah, so you're talking about aspiration. Yes, So the first
20:29
Katy: the first point I make is and you're not making
20:32
Katy: this point, but I think it's important to be made,
20:34
Katy: is that this is not generation versus generation. This is
20:37
Katy: a government sitting down with all the information available to us,
20:39
Katy: right now, saying what are the right decisions to take
20:43
Katy: for right now to enable as many people, young people
20:46
Katy: as we can into housing along with everything else we're
20:49
Katy: doing on supply. The issue of aspiration though is important too,
20:54
Katy: because you're right, I mean, people want to work hard,
20:56
Katy: they want to you know, you know, get in, you know,
21:00
Katy: purchase investments if they're able to do so. They want
21:03
Katy: to provide for their children if they have them, all
21:05
Katy: of that, and that's important. What we're doing in this
21:08
Katy: budget is saying that's fine, but you do that on
21:11
Katy: new homes. We've got to decouple what's happening in the
21:17
Katy: kind of established housing. But the other thing, just quickly,
21:21
Katy: the other thing this budget does, and Jim touched on
21:23
Katy: it before, is we're trying to dec well, make rebalance
21:28
Katy: in a sense the way we tax income with the
21:31
Katy: way we tax assets, to make it a little bit
21:33
Katy: more equally. It's still advantageous in terms of taxing assets
21:37
Katy: and investments, but we need to make sure that we're
21:40
Katy: not disincentivizing or you know, we're having unfair arrangements in
21:45
Katy: relation to income.
21:47
Glen: On maybe the politics side of it. The Henry Review
21:54
Glen: Allegra's recent paper talking about well, and I've done some
21:58
Glen: analysis with mild it's that maybe a discount of thirty
22:02
Glen: or thirty five percent probably would fix a lot of
22:06
Glen: the problems ongt CGT. So the question is why didn't
22:13
Glen: you go, well, let's just do thirty or thirty five
22:16
Glen: because surely that would have been easier to sell to say.
22:19
Glen: We're not removing the discout, guys, we're just every report
22:23
Glen: for the last twenty years said it needs to be
22:25
Glen: reduced and basically now going back to the indexation method,
22:30
Glen: which is a better method to actually cut the indexation.
22:35
Glen: But why did we not we looked at all of that,
22:38
Glen: and why did we land it such a hard line.
22:41
Katy: Well, we looked at all of that. And part of
22:43
Katy: our thinking too is what the changes did with the
22:46
Katy: fifty percent is in when they were bought in nineteen
22:49
Katy: ninety nine, and Jim touched on this, it's sort of
22:52
Katy: decoupled housing from income for a start, and so we've
22:57
Katy: seen very significant housearticularly detached housing growth over that time,
23:02
Katy: and that's been beneficial for those under the CGT arrangements.
23:06
Katy: It hasn't been for other types of investments. So units
23:10
Katy: and shares have been under essentially you know, they underachieved
23:15
Katy: and single dwellings have been the opposite. So again trying
23:20
Katy: to rebalance and put in place like a you know,
23:24
Katy: essentially this removes in inflation and taxes, real gains in
23:29
Katy: negative gearing. If you're going to buy a new home,
23:32
Katy: you'll have the choice of which way you go.
23:33
Glen: Yeah, I didn't, and that was probably the only thing
23:35
Glen: that wasn't leaked.
23:38
Katy: And then it don't start on that.
23:41
Glen: And like reading this, like Bill Shorten is looking down
23:46
Glen: from wherever he's at the moment, going I'm so proud
23:50
Glen: that you guys got some of this across the line.
23:52
Katy: Well, yeah, like we have in this we're announced in
23:56
Katy: this budget. We've got to get the ledge through the.
23:57
Glen: Part that's right. So that's going to be a potent challenge.
24:00
Glen: Not sure, why not do the Holy Trinity and go
24:04
Glen: franking credits and see what we can if we were
24:07
Glen: going to do the whole Well, this is.
24:09
Katy: Still pretty substantial, that's what I mean. Yeah, like it's
24:12
Katy: a big you know, I can't think, well, Jim thinks
24:16
Katy: it's you know, around the time of the GST being
24:18
Katy: introduced by two thousand, this is a big, you know,
24:23
Katy: reform that we are undertaking, and you know, in a
24:26
Katy: sense it's informed by our decisions around housing, you know,
24:32
Katy: and you have to see it in that light. It's
24:34
Katy: an element of what we're trying to do around making
24:36
Katy: sure young people can actually get in it, they're not
24:39
Katy: locked out of the housing market.
24:41
Glen: So the CGT review in March when it was published,
24:44
Glen: we've got one old quick question, VD can finish? It
24:49
Glen: was in March the CGT review where broadly the review
24:52
Glen: said it ain't working. Did we when the war broke
24:58
Glen: out and all this turmoil, It's like, this is a
25:01
Glen: good chance, it's going to be a tough budget. Anyway,
25:04
Glen: let's just get this done and just deal with this
25:07
Glen: whole thing.
25:09
Katy: Like I wish you would change. Ah, the war has
25:13
Katy: changed a lot in this budget.
25:14
Glen: But did a change maybe bringing this scrapping the CGD
25:17
Glen: discount and negative gearing.
25:19
Katy: Like we did it accelerate that?
25:20
Vince: Well?
25:20
Glen: Just more was like this is crazy time. Let's just
25:23
Glen: get rid of all the bad stuff.
25:25
Katy: No, no, no, no, no, it wasn't that's not how
25:28
Katy: but anyway. In fact, Jim kind of touched on this
25:31
Katy: in the press conference where he said, you know, really
25:35
Katy: the turbulence and the volatility and the uncertainty, you know,
25:39
Katy: could present the other side, which is, don't do this.
25:42
Katy: And you know, we're making these decisions based on the
25:46
Katy: circumstances we face right now and what we think is
25:48
Katy: the right thing to do right now in terms of
25:50
Katy: supporting our housing agenda. And you know, that's where it
25:54
Katy: began and that's where it ended.
25:57
Glen: I asked my Facebook group, if you voted for labor
26:02
Glen: based on the tax changes, what's your vibe? Basically rough
26:06
Glen: numbers who the people have completed it? About forty five
26:10
Glen: percent said I'm so pissed off they lied and all
26:14
Glen: this is labor voters. The other forty five percent, and
26:17
Glen: then the rest was like other were like Nana voted labor.
26:21
Glen: Trust their judgment. It's all a good baby. And I
26:23
Glen: just thought that was interesting. I guess if you're rusted
26:26
Glen: on labor, you're not upset with this going through. I've
26:32
Glen: got a.
26:33
Victoria Devine: Lot more reflection time on the bloodget that I want
26:35
Victoria Devine: to be doing. But I really do feel like there's
26:37
Victoria Devine: a lot of jumping up and down right now about
26:40
Victoria Devine: they lied. They lied, they lied. But the world was
26:43
Victoria Devine: a very different place when these things were being said
26:46
Victoria Devine: and decisions were being made and like now we're in
26:49
Victoria Devine: the middle of a war. Now there are oil issues.
26:52
Victoria Devine: There are so many different things I think it. Do
26:54
Victoria Devine: you think that these conversations are being addressed in the
26:57
Victoria Devine: right way? Like I feel like the media is jumping
27:01
Victoria Devine: up and down and going they have lied to us.
27:03
Victoria Devine: But the world's a different place. Am I coming from
27:07
Victoria Devine: a relatively normal I guess trying to be balanced and
27:11
Victoria Devine: see where the sun is coming from? Way?
27:14
Katy: Yeah, Look, I mean the way I think about it is,
27:18
Katy: you know, the politics, the politics will be there. I
27:22
Katy: think if you engage on the substance of the policy issue,
27:27
Katy: you'll see that these decisions are being made for the
27:29
Katy: right reason. If you engage on the policy issue, the
27:32
Katy: politics will be there. There's no doubt. My view is
27:34
Katy: if governments changed their minds, we're elected to govern, you know,
27:38
Katy: you're not elected to you know, sit in a seat
27:41
Katy: and not take hard decisions, you know, day to day.
27:44
Katy: That would make my life a bit easier, to be honest,
27:46
Katy: if we took that approach. So we're elected to govern,
27:50
Katy: and we might have to make thousands of decisions, many
27:53
Katy: of which don't aren't election commitments or whatever. You're just
27:56
Katy: dealing with what you're dealing with and if you have
27:59
Katy: view change, if information to you is come through the
28:02
Katy: budget process that changes your mind for whatever reason. The
28:06
Katy: job then is to front up and explain it. People
28:09
Katy: will make their own view. The politics will happen alongside
28:12
Katy: of it, but our responsibility is to say, Yep, our
28:16
Katy: position has changed, this is why it's changed, this is
28:19
Katy: why we're doing it. And you know, we'll see where
28:23
Katy: it lands. I mean, there'll be plenty of polls and like.
28:26
Glen: It was just fascinating. It's like half of the people
28:28
Glen: who voted labor were like, yeah, go for a baby.
28:32
Victoria Devine: And I feel like that's what's so interesting about politics,
28:35
Victoria Devine: because opinions of people who are incredibly educated and then
28:38
Victoria Devine: people you know just on the street are being asked
28:40
Victoria Devine: the same questions and we just don't know what weight
28:44
Victoria Devine: to put on which opinion when they're all flying around
28:46
Victoria Devine: the internet, right, And I think that that makes it
28:49
Victoria Devine: really challenging.
28:51
Glen: We need to let Katie go now, we do have to.
28:53
Katy: Katie missed the speech. Lovely to see both.
29:04
Glen: All right, Vince, welcome back in.
29:06
Victoria Devine: I kicked you out of the hot seats so could
29:09
Victoria Devine: come on in.
29:10
Glen: And that was Yeah, I'm more for me, I'm more
29:15
Glen: fascinated with the politics of it.
29:19
Vince: It's a lot of theater, isn't it.
29:20
Glen: But it's more like if because one of my questions
29:24
Glen: that I was going to ask someone was like, what
29:26
Glen: has changed between last election and right now to ram
29:33
Glen: this CGT removal, the discount and the negative gearing. Now,
29:41
Glen: it's very clear that the stripes on the labor leopard,
29:48
Glen: the leopards have strips. They ever changed their stripes, but
29:53
Glen: all right, whatever, it's been a long life back off.
29:56
Glen: So like the political and this is not a view
30:00
Glen: whether it's good or bad. It's like they've got what
30:03
Glen: an extra thirteen seats or whatever in the parliament. They
30:07
Glen: know that let's ram it through now and we've got
30:12
Glen: two years to make it up.
30:14
Vince: But I think the public has got more concerned about
30:19
Vince: housing there were two years ago, and it's not a
30:22
Vince: new issue, but I think it's a much more live issue.
30:25
Vince: I think increasing fuel prices, inc using energy prices, inflation
30:30
Vince: being a bit more stubborn. Three rate rises in a row,
30:33
Vince: I think the public is willing to accept something. Sure,
30:37
Vince: some of it sounds like a broken promise.
30:39
Glen: Something has to change because he's so cooked out there
30:43
Glen: for a lot of people.
30:44
Victoria Devine: I agree, And I don't think that the average person
30:47
Victoria Devine: was approaching this budget expecting an outcome that was, oh
30:52
Victoria Devine: my goodness, I'm so excited I'm going to be able
30:54
Victoria Devine: to save. I think it's more we're approaching this budget
30:58
Victoria Devine: hoping to just see some more support in areas that
31:02
Victoria Devine: are really impactful, like cost of living. At the moment,
31:04
Victoria Devine: we're not expecting to save heaps or you know, have
31:07
Victoria Devine: our tax or sorry, have our like CGT shine through.
31:12
Victoria Devine: I just think when it came to the headlines, personally,
31:16
Victoria Devine: from everything I saw within my community, we're really looking for,
31:21
Victoria Devine: you know, how were we going to be a stable economy.
31:24
Victoria Devine: How are we going to be able to continue to
31:26
Victoria Devine: buy the groceries and pay our electricity bills? Like what's
31:29
Victoria Devine: going on there? And I know that there are a
31:31
Victoria Devine: few headlines here about taking the pressure off Australians, but
31:36
Victoria Devine: I just feel like it wasn't enough.
31:39
Vince: Two hundred and fifty dollars literally one thousand dollars right
31:45
Vince: off for work expenses. I mean, if you're an average
31:50
Vince: way journey, that thousand dollars is worth three hundred and
31:53
Vince: twenty dollars. It is and another two fifty that's five
31:58
Vince: hundred and seventy dollars before you get to do with
32:01
Vince: the rest of it.
32:02
Glen: I actually didn't mind the I mean, for some people
32:06
Glen: might not change the world and extra two fifty to deduct,
32:09
Glen: but the fact that it's there if you've got a
32:12
Glen: PAYG income, not just lumping on investment income DETAXT that
32:16
Glen: like that's not too bad. And again, like my whole
32:19
Glen: thing is like we haven't actually had the time. This
32:23
Glen: is where I think it's our initial response to have
32:27
Glen: a look any other initial responses from UVD.
32:31
Victoria Devine: I really honed in on the taking the pressure off
32:33
Victoria Devine: the average Australian. I was interested to see the and
32:38
Victoria Devine: this was something that existed before around the fuel xis
32:41
Victoria Devine: the two point nine billion dollars.
32:44
Vince: That's not new though, that's already been in it.
32:46
Victoria Devine: No, but they've really yeah, but they've really honed in
32:49
Victoria Devine: on that and the budget and kind of tried to
32:51
Victoria Devine: highlight it. And it's for me a little bit frustrating
32:54
Victoria Devine: because I'm like, you already did that, like most of
32:57
Victoria Devine: that has already been spent. But in this speech in
33:01
Victoria Devine: his press conference on the front page of the key
33:05
Victoria Devine: budget initiatives, it's right there, and I'm like, we're printing
33:09
Victoria Devine: things that have already been done. This isn't new, and
33:12
Victoria Devine: you're really trying to make yourself look good.
33:15
Vince: Initially have done the same thing with the five percent
33:17
Vince: home deposit exactly.
33:20
Glen: Yeah.
33:20
Victoria Devine: I was sitting next to Kiara going through this, and
33:23
Victoria Devine: I said to Kiara, if there's anything you don't get, like,
33:26
Victoria Devine: come and have a chat with me, and she goes, via,
33:28
Victoria Devine: I get this, but I thought we already had this.
33:30
Glen: And I was like, we do That was and that
33:33
Glen: was I think us In his speech, He's like, this
33:35
Glen: is much of first home buyers? Well is it?
33:38
Victoria Devine: Because we already had all of these things. And I
33:42
Victoria Devine: know that there's now two billion dollars for local housing
33:45
Victoria Devine: infrastructure to support up to sixty five thousand new homes.
33:50
Victoria Devine: How far does that go over a decade?
33:53
Glen: That's my thing with this whole new home thing. The
33:55
Glen: cost that has increased to build a brand new home
33:59
Glen: on this island in the South Pacific has gone through
34:03
Glen: the roof, So it can like, sure, if I buy
34:06
Glen: a new home as an investment property, sure, but it's
34:10
Glen: freaking expensive and I don't And then where we're going
34:15
Glen: to get the layer to build the bastards like this
34:18
Glen: is it's actually good.
34:19
Vince: To have energy fishing houses, but if you put in
34:22
Vince: those laws that make billing house go more expensive, you're
34:26
Vince: sort of saying to people, well, you can't have a cheap,
34:29
Vince: energy inefficient house. You can only have an expensive energy
34:32
Vince: fishing house.
34:34
Glen: But human choice, the oil prices going up, like the
34:37
Glen: cost of plastic thing plumbing increase what thirty percent.
34:41
Vince: Like it was the less than two dollars a liter
34:44
Vince: coming down here a dollar ninety four a liter from Yeah, it's.
34:47
Victoria Devine: Not too bad, but it's still just not going in
34:49
Victoria Devine: the right direction.
34:50
Glen: More concised, I thought it was interesting in the their estimates.
34:55
Glen: So I like to look at debt to GDP. We
34:57
Glen: know that it's probably around thirty five percent now and
35:00
Glen: in the next few years projected. Everyone's like, oh, the
35:03
Glen: country's got debt. It ain't actually a big deal when
35:06
Glen: you look at other countries that's relatively we don't have
35:09
Glen: debt and.
35:10
Vince: On deficits or low by global standard.
35:12
Glen: So like we are lucky in that sense. Interestingly, they
35:17
Glen: projected in the budget papers that inflation basically from next
35:22
Glen: financial years, so that's from one July the next financial year,
35:26
Glen: the projection is inflation would drop back down to two
35:28
Glen: and a half.
35:29
Victoria Devine: Telling me he's dream and so I thought that was
35:31
Victoria Devine: a wild tape.
35:32
Glen: That was ambitious, I think courageous.
35:35
Victoria Devine: And he did say in his press conference it was
35:38
Victoria Devine: an ambitious budget, but I didn't know that by ambitions.
35:43
Vince: I don't know if flaky assumptions makes it for an
35:46
Vince: ambitious budget.
35:47
Glen: I mean really like. So that basically means by December
35:51
Glen: inflation has got to be back down to just over three.
35:54
Vince: Like well, if if the war I mean I would like,
35:58
Vince: but if the war goes gets, if it's over a
36:03
Vince: short time, you could take one percent out of inflation
36:06
Vince: by your price for them, although it's going to be
36:09
Vince: undone when they put the fuel exits back up because
36:11
Vince: presuming when the barrel drops.
36:13
Glen: You know the interesting thing, I don't think we've really
36:17
Glen: felt the impact on the fuel prices yet float through
36:22
Glen: because there's still a lot of businesses that haven't put
36:25
Glen: levies on and are too scared to but particularly small businesses.
36:31
Glen: Oh just on that with arout on the trust. So
36:37
Glen: at the moment, if you've got a discretionary family trust
36:40
Glen: or it's a trading business, trusts generally at the moment
36:45
Glen: do not pay tax. However, if you do not distribute
36:48
Glen: from a trust, you'll pay the highest tax rate. So
36:52
Glen: ordinarily people would distribute out of trusts and the beneficiaries
36:55
Glen: or the bucket companies would then pay the tax.
36:57
Victoria Devine: It doesn't make a lot of sense to keep your
36:59
Victoria Devine: cash in trust. You wouldn't You just wouldn't distribute silly.
37:03
Glen: So they're now saying discretionary family trusts thirty percent tax
37:08
Glen: at a minimum minimum off the top. The question I've
37:13
Glen: got is as a small business, if you're if you've
37:19
Glen: got an operating trust, there's a burnt in thirty percent
37:24
Glen: that you will now have to pay if it gets
37:27
Glen: put to bed. If it was in a company, you
37:30
Glen: would get twenty five percent because you've lower turnover and
37:34
Glen: you tick that box. So they're also allowing people to
37:40
Glen: move out of discretionary trust into other entities. For me,
37:44
Glen: and this is I guess my opinion piece that whole
37:47
Glen: taxing the trust thing was potentially more ideological because I'm
37:53
Glen: I mean the number, I haven't actually did we.
37:55
Victoria Devine: Think that that's going to operate the same as kind
37:58
Victoria Devine: of a franking credit once it is is I would
38:00
Victoria Devine: the distinction though.
38:02
Vince: I know it's getting a bit hurricane, but the distinction
38:04
Vince: is that it's not refundable. So few Frankie gread for
38:08
Vince: your tax rates less than thirty percent, retirees or self
38:13
Vince: super funds or super funds. Generally you'd get it back
38:16
Vince: in cash, whereas these ones are not refundable. So subtle difference.
38:20
Glen: Another thing.
38:22
Victoria Devine: So that's why we brought Vince.
38:23
Glen: That's right, our factor, our fact checker in a box.
38:27
Glen: Another thing which I actually thought was interesting, the FBT
38:34
Glen: rate for electric vehicles zero percent.
38:37
Victoria Devine: Got that up right now. I was about to talk
38:40
Victoria Devine: about that.
38:41
Glen: So from the FBT, if next April.
38:44
Victoria Devine: First of April twenty se you buy.
38:46
Glen: A car over seventy five thousand dollars it's electric, you
38:50
Glen: pay twenty five percent FBT. At the moment, the threshold
38:55
Glen: is luxury car tax electric vehicles ninety one thousand dollars. Yes,
39:01
Glen: So if you are, if you do have a family
39:03
Glen: and you want to buy an electric vehicle and package
39:05
Glen: it through workably, do it before one April next year.
39:08
Victoria Devine: You're going to buy an electric vehicle, I'd be doing
39:11
Victoria Devine: it before the first of April twenty seven. The budget,
39:14
Victoria Devine: there is a toorial.
39:15
Vince: So if you're buying something over the seventy five limits,
39:21
Vince: you're going to instead ofn So a normal combustion engine
39:27
Vince: is going to be twenty percent, yes, this will be
39:29
Vince: twenty five percent off that being fifteen percent or sixteen.
39:32
Victoria Devine: Yes, So a permanent twenty five percent fringe benefit tax
39:36
Victoria Devine: discount for eligible electric cars over seventy five thousand dollars
39:39
Victoria Devine: and all eligible electric cars from the first of April
39:43
Victoria Devine: twenty twenty nine.
39:44
Vince: So presuming that twenty percent if becomes sixteen, twenty five
39:49
Vince: percent of twenty is fifteen percent, right, it's a bit
39:53
Vince: late on budget date.
39:54
Speaker 2: You know.
39:55
Glen: Another I think we just also for completeness around this
39:59
Glen: negative gearing. So how it works at the moment, if
40:04
Glen: you had an investment property that had one hundred thousand
40:07
Glen: dollars worth of income and sorry, fifty thousand dollars worth
40:11
Glen: of income and one hundred thousand dollars worth of expenses
40:14
Glen: though interest costs or agent fees and whatnot, that fifty
40:18
Glen: thousand dollars loss. If you earned one hundred thousand dollars,
40:22
Glen: you would take that loss and take it off the
40:24
Glen: one hundred thousand dollars and only pay tax on the
40:26
Glen: one hundred thousand, they're stopping that, and there's a bit
40:31
Glen: of a transition period. So if you buy a house
40:33
Glen: tomorrow after budget night, you can effectively negative gear it
40:37
Glen: for twelve months. Yeah, and the losses are quarantined in
40:44
Glen: the property pool, if that makes sense. So if you
40:47
Glen: had two properties, investment properties, one of them was running
40:52
Glen: a fifty percent loss and the other was running in
40:54
Glen: a fifty percent gain, it would net out.
40:57
Victoria Devine: Yeah, which I think is quite an effective strategy. I
41:00
Victoria Devine: don't think that's the worst thing.
41:02
Glen: Whether Legra did her tax thing. I'm like, yeah, let's
41:05
Glen: just put offset, like, just link the offsets and the
41:10
Glen: games to the asset.
41:11
Vince: But remember, if you've got a five and one thousand
41:13
Vince: dollars property, this is potentially a four thousand dollars tax hit. Yes,
41:19
Vince: this is a big deal. Oh yeah, it's And if
41:22
Vince: you couple that with the Treasury modeling that says house
41:24
Vince: price is going to grow two percent less, the economics
41:28
Vince: of buying a negative view of property is now not
41:31
Vince: as sexy as it.
41:33
Glen: And honestly, I just me, you know, fil the capitalist
41:37
Glen: pig property investor and all that stuff. I don't know
41:40
Glen: if I'm rushing just to buy a new property because
41:43
Glen: of the costs, and then you think the amount of
41:47
Glen: you know, property developers at the best of times are
41:51
Glen: known for being dodgy, right, and that's probably being polite.
41:53
Glen: And there's how if you are watching, you're a property
41:55
Glen: developer and you're legitimate amen, brother or sister.
41:59
Vince: But I think colorful might be a bit.
42:02
Glen: I just think it could open the door for some
42:04
Glen: more unscrupulous activity around new housing stock.
42:09
Vince: It sort of makes a knockdown rebuild a very attractive
42:12
Vince: option though, because you get.
42:13
Victoria Devine: The better then you've got building costs.
42:15
Vince: You benefit about being in an established area, whereas if
42:19
Vince: you otherwise want to buy an investment property, if you're
42:21
Vince: buy an investment if you want to invest in investment.
42:22
Glen: Property, but the numbers still have to stack up.
42:25
Vince: They do, but you don't have to go to the
42:28
Vince: edge of town and you don't have to buy it
42:30
Vince: off the plan apartment. You can actually buy something in
42:33
Vince: an established area and benefit that way.
42:36
Glen: Another thing that I found interesting was the flat on
42:40
Glen: the capital gains tax and this and to be honest,
42:43
Glen: everyone like, again, we haven't actually it's been a very rush.
42:47
Glen: We haven't fully just our initial reaction everyone, So at
42:49
Glen: us please the thirty flat tax?
42:55
Vince: Is that the mineral?
42:55
Glen: Yes, so just read that line VD.
42:57
Victoria Devine: So the CGT reform will only imply to gains arising
43:01
Victoria Devine: after the first of July twenty twenty seven, and investors
43:04
Victoria Devine: for new builds will be able to choose the fifty
43:06
Victoria Devine: percent CGT discount or the new arrangements for new properties.
43:11
Glen: For new properties, then in that CGT there's a line
43:14
Glen: there about the minimum or the flatform.
43:17
Victoria Devine: Actually, the government will replace the fifty percent capital Gains
43:20
Victoria Devine: Tax discount with a discount based on inflation and introduce
43:25
Victoria Devine: a minimum thirty percent tax on gains from the first
43:28
Victoria Devine: of July twenty twenty seven.
43:30
Glen: So if I sell an asset, and this is another thing.
43:34
Glen: It was initially leaked at the start of the year
43:37
Glen: that they're going to have property only carved out from
43:41
Glen: the CGT discount. Then it was new properties, and now
43:45
Glen: it's all asset classes.
43:46
Vince: Yeah.
43:47
Glen: So as a practical takeaway, mister Encyclopedia, I purchased a
43:53
Glen: house and we'll just do basic numbers for five hundred
43:56
Glen: thousand dollars. In two years time, I sold that house
44:00
Glen: for six hundred so I've got clean numbers.
44:03
Vince: I like it.
44:03
Glen: I've got a one hundred thousand dollars gain. Does this
44:06
Glen: mean here.
44:07
Vince: So I'm going to deduct six percent for inflation?
44:10
Glen: Yes, so we do the inflation first, So we stoop
44:12
Glen: the inflation first. Then seventy seventy thousand, so thirty percent
44:18
Glen: of that seventy thousand straight to Jim.
44:22
Vince: Well, then the greater of your marginal rate war thirty percent.
44:27
Vince: So and from most practical purposes, if you're making a
44:31
Vince: gain of that size, your marginal rates more than thirty
44:34
Vince: percent anyway, Yeah, given that you forty five thousand dollars
44:37
Vince: gets you into the thirty two percent range.
44:39
Glen: And I know we'll probably talk about this more on
44:42
Glen: retire right, but this potentially do we think it will
44:47
Glen: change when we dispose of Yes, it could.
44:49
Vince: Very well do, because the general incentive today is to
44:52
Vince: wait till.
44:52
Glen: Your income drops to zero percent.
44:55
Vince: Subject to potentially sheltering some of it with a concessional
44:58
Vince: super contribution. But only the incentive is to wait till
45:01
Vince: your tax rates lower to sell your property when you
45:05
Vince: now need the income to retire on. And this will
45:10
Vince: change that dynamic a little bit.
45:12
Glen: Another thing we on the CGT there was another thing.
45:19
Vince: We want to talk about broken promises. I when bringing
45:22
Vince: pre nineteen eighty five assets into the CGT, for.
45:26
Victoria Devine: Many of my listeners retire right about the money out, well,
45:32
Victoria Devine: they will care when they inherit mum's house.
45:36
Vince: They won't get they won't get a market based cost base.
45:38
Vince: When they get it, they will get an adjusted purchase price.
45:42
Vince: So yes, it will matter.
45:43
Victoria Devine: And I mean having a look at this as well
45:46
Victoria Devine: because I think for my community a lot of it
45:49
Victoria Devine: as well, how does this benefit me? Like they're not
45:51
Victoria Devine: going to sit down or maybe they will sit down
45:54
Victoria Devine: and watch the budget. But I feel like that's a
45:56
Victoria Devine: lot of spiel, it's a lot of marketing. It's a
45:59
Victoria Devine: lot of trying to sell us the dream. And I
46:02
Victoria Devine: feel like when we had our little chat before with
46:06
Victoria Devine: Jim and Katie, they came around and you know, came
46:08
Victoria Devine: into our room and they were.
46:09
Glen: Like, oh, actually got the questions at the end of
46:11
Glen: this episode if you want, yeah.
46:13
Victoria Devine: Yeah, yeah, yeah. The audio of that you clipped it
46:17
Victoria Devine: was interesting because I asked a question about what you
46:21
Victoria Devine: would be most proud of when it comes to this budget,
46:23
Victoria Devine: and I feel like that's usually pretty telling about their
46:26
Victoria Devine: top line marketing, right it's not really what Jim thinks,
46:30
Victoria Devine: it's what they're trying to sell the most, and that
46:32
Victoria Devine: was the first thing he talked about in his press
46:34
Victoria Devine: conference as well. Almost word for word, you.
46:38
Vince: Would think that the where it does play into first
46:42
Vince: home buys. Yes, there's fewer negatively geared investors competing for
46:47
Vince: the same stock, and Treasury are saying price is going
46:50
Vince: to rise at two percent less. That makes it easier,
46:54
Vince: less demand, lower prices. What's not to like? Now we
46:59
Vince: got inflationary budget, are we going to have more rate
47:01
Vince: rises which could undo all of that interesting challenge.
47:04
Victoria Devine: From a cost of living perspective as well, Like if
47:07
Victoria Devine: you add all of those tax benefits together, so we've
47:10
Victoria Devine: got the two hundred and fifty dollars working Australians tax offset,
47:14
Victoria Devine: and then you know, on top of that the three
47:17
Victoria Devine: tax cuts that the government has already legislated that we've
47:20
Victoria Devine: spoken about, as well as that one thousand dollars instant
47:24
Victoria Devine: tax right off come tax time. That kind of means
47:28
Victoria Devine: up to like you could be up to about twenty
47:31
Victoria Devine: eight hundred dollars better off this financial year, which I
47:34
Victoria Devine: think is a good good situation for us to be in.
47:37
Victoria Devine: When you kind of bring it all together for the
47:40
Victoria Devine: average Australian and that's the average Australian earning less than
47:43
Victoria Devine: what was one hundred and eighty two thousand dollars. So
47:46
Victoria Devine: for my community, I'm like, well, this is better than
47:49
Victoria Devine: the kick in the pants.
47:51
Glen: Yeah, we didn't see I mean the establishing a twenty
47:54
Glen: percent domestic gas reservation. That's not new. They talked about
47:58
Glen: that now last week.
48:01
Vince: I think that was a budget leak.
48:02
Glen: Well there was a lot that was leaked gas leak,
48:05
Glen: and I really like I acknowledged that three point two
48:09
Glen: billion to establish more fuel like a fifty days supply.
48:15
Glen: You know, if you look at the winners and losers
48:17
Glen: when the ABC and all that do, the winner is
48:20
Glen: hopefully we don't run out of fuel. Was it an
48:22
Glen: island and.
48:25
Vince: We didn't have to do this when we had four
48:26
Vince: refineries in the country.
48:27
Victoria Devine: Yeah, but that's like and now they're saying that they're
48:31
Victoria Devine: gonna withhold twenty percent of all oil reserves to stay
48:35
Victoria Devine: for Australians, don't get me wrong, or gas. Sorry, that
48:39
Victoria Devine: sounds very favorable, but we were always going to have
48:43
Victoria Devine: access to that. From my perspective, I was like, okay,
48:47
Victoria Devine: the last thing.
48:48
Glen: Australia has that much natural gas, we could probably power
48:51
Glen: Australia for a thousand years. Right, that's not a comment
48:54
Glen: on whether it's good for the environment environment or not.
48:57
Vince: It's common.
48:58
Victoria Devine: Your light's not going off.
49:00
Glen: Why as a nation can't we do it? So it's
49:04
Glen: like you can so and this is way they're really
49:07
Glen: dodging this gas tax thing in this budget. Obviously I
49:10
Glen: haven't talked about it. It's almost like, if we're a country,
49:15
Glen: why not say, yeah, you can send as much gas
49:18
Glen: as one off shore that Australia doesn't pay for it,
49:23
Glen: Like could that be a trade off, Like, sure, we'll
49:25
Glen: reserve twenty percent to sell into Australia. And because at
49:29
Glen: the moment, I believe Australia buys gas that's mined in
49:34
Glen: Australia at international spot prices.
49:37
Vince: It's traded, it's traded import parity.
49:41
Glen: Yeah, so what they're saying now is there will be
49:43
Glen: a reserve that is set apart from that structure. I'm saying, well,
49:48
Glen: let's just go all right, we won't do a gas
49:50
Glen: tax as savage as the twenty five percent. Why not
49:53
Glen: just go literally free gas for Australia.
49:56
Vince: I maybe have that argument with the West Australian government,
49:58
Vince: who's coining in the royalties. I don't know.
50:00
Glen: I just think I think we'll finish up because this
50:03
Glen: is just a lot of.
50:05
Victoria Devine: And there's a lot of topics we haven't touched on.
50:07
Victoria Devine: So for example, I haven't touched on the First Nations
50:11
Victoria Devine: communities and how they're being and there was some really
50:15
Victoria Devine: significant work there. The budget is investing one point two
50:18
Victoria Devine: billion dollars into them, and two hundred and ninety nine
50:22
Victoria Devine: million dollars is being invested into creating an additional three
50:26
Victoria Devine: thousand jobs in regional Australia, which I think is remote Australia, sorry,
50:31
Victoria Devine: And I think that that's really powerful. And then there
50:33
Victoria Devine: was also a really big section in the budget which
50:35
Victoria Devine: comes start of the year. Would never have been something
50:38
Victoria Devine: that you know, we would have thought would have been
50:40
Victoria Devine: part of the budget, and that's the government's response to
50:43
Victoria Devine: the Bondai attack and how big that is. And I
50:46
Victoria Devine: won't get into the semantics of that now. I'm having
50:49
Victoria Devine: a sit down tomorrow with Anthony Albanesi and Katie Gallaher again.
50:54
Victoria Devine: But it was really interesting just seeing and I want
50:58
Victoria Devine: to know where this money has been like kind of
51:00
Victoria Devine: call from like what's being spent on. So sixty nine
51:03
Victoria Devine: million dollars for the Australian Federal Police's National Security Investigations Team,
51:09
Victoria Devine: eighty million dollars is going to response, sorry, is going
51:13
Victoria Devine: to respond to violent extremism, prevent youth radicalization and enhance
51:18
Victoria Devine: capabilities to counter terrorism threats online. And seventy million dollars
51:23
Victoria Devine: for the High Risk Terrorist Offenderation exactly.
51:26
Vince: So it's just general anti terrorism rather than a specific Yes,
51:30
Vince: we're not putting arm guards and syndicogues no.
51:32
Victoria Devine: And I think that a lot of people are just
51:34
Victoria Devine: going to see the headline there of like, oh, well
51:36
Victoria Devine: that was one event, and I'm not, you know, undermining
51:39
Victoria Devine: that for any any stretch of the imagination, but I
51:43
Victoria Devine: think it is really important to see that that's really
51:45
Victoria Devine: important for Australia's security. But then also where did that
51:50
Victoria Devine: come from? Why wasn't it a priority before? If it
51:52
Victoria Devine: was a priority before, what was going to be invested.
51:55
Victoria Devine: I'm just so interested in where it was.
51:57
Vince: Kind of because there's been money taken out of that.
52:00
Victoria Devine: Different areas of the budget, I really feel.
52:02
Glen: For so, could you imagine being a State treasurer at
52:06
Glen: the moment, like feds are like ndis, we're striving that
52:11
Glen: back states can pay for the stuff that falls out
52:13
Glen: of that.
52:14
Victoria Devine: Yeah, I think that would be a.
52:16
Vince: Lot, but gets where the state's money comes from.
52:19
Glen: Federal GCT, GST, federal.
52:23
Vince: Grounds yep, and land tax, stamp duty.
52:26
Victoria Devine: Don't get messed out of peril.
52:29
Glen: Peril tax is so interesting that it's a state thing,
52:32
Glen: isn't it.
52:33
Vince: It's the vibe in the constitution Glyn.
52:35
Glen: Yeah, anyway, I don't know. We might wrap it up there,
52:38
Glen: but there are initial kind of reactions.
52:41
Victoria Devine: Yeah, overall, what's one word that would summarize the budget
52:46
Victoria Devine: for you, Glenn?
52:48
Glen: Are we playing a word difficult? Are playing a world
52:51
Glen: word association game? You can play that tomorrow.
52:55
Vince: I've already gotten get caught doing that with some with.
52:59
Victoria Devine: Grace, Yes, any quarter difficult?
53:02
Glen: I was like, oh no, I'll tell you the situations anyway.
53:05
Victoria Devine: I'll sit down. What's your word, Vince?
53:10
Vince: Can I have two?
53:10
Victoria Devine: You can have as many as.
53:11
Vince: You want, different, courageous. This is the first budget in
53:16
Vince: a long time where there's actually some real meat.
53:18
Glen: In it, and I think any budget where they don't
53:20
Glen: get their mets on super is a when like, honestly,
53:24
Glen: how attractive. Would that, honeypop Bee?
53:26
Victoria Devine: It absolutely would be. But also the second they get
53:29
Victoria Devine: their mets on super and they start taxing it away,
53:33
Victoria Devine: the second they're going to have to start investing more
53:35
Victoria Devine: intensions and supporting our community.
53:38
Glen: Yeah, I think to be fair though, they did all
53:40
Glen: their tweaks in the last six months anyway.
53:42
Vince: Although if you look at some of the Treasury consultation
53:45
Vince: around forcing or encouraging, nudging super funds into investing in
53:51
Vince: private equity and venture capital, I mean, well, do you
53:55
Vince: know what they like? They've just done that new UK
53:57
Vince: with mandatory contributions.
53:59
Glen: So I was going to bring this up and we
54:02
Glen: get to ask you. I don't know if I can
54:04
Glen: sit down with him tomorrow, but they're trying to change
54:07
Glen: the what's the performance test to carve out VC stuff
54:14
Glen: to allow funds to make.
54:16
Vince: To lose money.
54:19
Glen: But I think for me, the only thing that I
54:25
Glen: saw that wasn't leaked was potentially the flat thirty percent tax,
54:30
Glen: potentially the negative the choice for a new property, if
54:35
Glen: you sell it, you can choose the indexation method all
54:38
Glen: the fifty percent method. I think that was interesting, and.
54:43
Vince: The pre eighty five and the creative No one was
54:46
Vince: talking about it.
54:46
Glen: Yeah, but I just think my honest take was the
54:50
Glen: chat show with the war. We've got a messy situation
54:54
Glen: in Australia. We've got the one oh one labor ideology
54:59
Glen: of ditching in CGT and negative gearing. Let's have a mess,
55:05
Glen: let's push it through. Let's take a couple of years
55:07
Glen: to win back trust. But I'm a big fan of
55:11
Glen: something needs to change one hundred percent. It is cooked
55:14
Glen: out there for people trying to get into their first
55:16
Glen: home to get ahead, something needs to change. And if
55:20
Glen: you've already like particularly, I'll talk to my listeners here
55:23
Glen: not vds, you can.
55:24
Katy: Talk to her, talk to mine.
55:26
Glen: If you've got five investment properties at the moment, you'll.
55:29
Victoria Devine: Be okay, yeah, that's really true.
55:32
Glen: Like let's you'll be fine. So I think we need
55:36
Glen: to look at this. How do we help others get
55:40
Glen: to buy their first home to live in if they want. Yeah,
55:43
Glen: But then it's like, okay, well, the energy costs and.
55:46
Victoria Devine: Oh, there's so much to take into consideration, and I
55:49
Victoria Devine: think we've gotten really granular. But I guess overarchingly, it
55:52
Victoria Devine: is very nice to see the trajectory of the country
55:57
Victoria Devine: headed in a less aggressive upward.
56:00
Glen: Yeah, it's pretty stable, which is interesting. I haven't and
56:02
Glen: maybe we'll have a look overnight because I want to
56:04
Glen: record the retire right one and maybe look at what
56:09
Glen: they're actually talked like about spending and GDP and but.
56:14
Vince: Remember, a government deficit is the flip side of private
56:17
Vince: sector wealth growth.
56:18
Glen: Yes, but that's economics one O one. Like the money's
56:22
Glen: it's got to land somewhere.
56:24
Victoria Devine: The money is going to live somewhere.
56:25
Vince: So if the government runs a surplus, the private sect
56:28
Vince: has to run a deficit, which means you and I
56:30
Vince: are getting poor.
56:31
Victoria Devine: Yeah all right, friends, that's all from us tonight. We've
56:34
Victoria Devine: got to go edit this podcast.
56:36
Glen: Get off, and at the end of this we'll put
56:39
Glen: the when Jim and Katie came in earlier. Yeah.
56:43
Victoria Devine: Perfect. If anyone's interested, see you around.
56:46
Glen: If you've watched this on YouTube on She's on the Money,
56:49
Glen: Give She's on Money, you like and I follow. If
56:51
Glen: you've watched it on my channel, welcome, give us a like.
56:54
Glen: Don't worry about following them, it's not worth it.
56:56
Vince: But it's really not put about a five star review.
56:59
Victoria Devine: Yeah, you give him a five star reviews on that
57:01
Victoria Devine: podcast platform with your choice ideally that she's on the
57:05
Victoria Devine: money to feed.
57:06
Speaker 8: Thanks huge emphasis in the budget on intergenerational concerns. I
57:15
Speaker 8: think that really one of the main motivations of what
57:18
Speaker 8: we're announcing tonight is to recognize that for too long,
57:23
Speaker 8: too many people, particularly young people, have been locked out
57:25
Speaker 8: of the housing market, that the interaction of the housing
57:28
Speaker 8: market and the tax system is effectively broken. The status
57:31
Speaker 8: quo is not working because it provides tax breaks of
57:36
Speaker 8: a sufficient magnitude that it crowds out young people from
57:41
Speaker 8: getting a toe hold in the housing market in particular.
57:43
Speaker 8: So really, some of our biggest motivations in this budget
57:47
Speaker 8: particular and the tax package, but more broadly is a
57:49
Speaker 8: sense of intergenerational fairness. The tax reforms are driven really
57:54
Speaker 8: by trying to better align tax on people who work
57:59
Speaker 8: for a living as people who get their income from
58:01
Speaker 8: out the sources. It's about getting an extra seventy five
58:04
Speaker 8: thousand owner occupies into the housing market over the next
58:08
Speaker 8: ten years, and it's about encouraging more innovation in our
58:11
Speaker 8: economy as well. And so really that's a long way
58:14
Speaker 8: of saying that we don't just acknowledge that there are
58:17
Speaker 8: genuine concerns about the generational unfairness in our budget, our
58:23
Speaker 8: tax system, our housing market, our economy more broadly, more
58:26
Speaker 8: than acknowledging that we're doing something about it, and that
58:29
Speaker 8: invites an element of political risk. There will be a
58:33
Speaker 8: lot of people who will go to the wall to
58:36
Speaker 8: defend the current arrangements, frankly, a lot of defenders of
58:40
Speaker 8: the status quo. But from our point of view, the
58:43
Speaker 8: reason we've come to this, the view that we're putting
58:46
Speaker 8: in the budget tonight, the policies that we're changing tonight
58:49
Speaker 8: in the budget, is because we don't want to leave
58:52
Speaker 8: this challenge to go unattended to and to become even
58:55
Speaker 8: worse over time.
58:57
Vince: Yeah, certain new homes kind of yeah, after that is
59:02
Vince: a result of the needed giving challenge. You said, investments
59:09
Vince: to instant new poty.
59:11
Speaker 8: Well, a really important part of the negative gearing changes
59:14
Speaker 8: is to say, if you're going to negatively gear, you've
59:16
Speaker 8: got to make a contribution to supply.
59:18
Vince: You know, we think that housing supply.
59:19
Speaker 8: Is still the main game when it comes to the
59:22
Speaker 8: housing problem, but the challenge doesn't end with supply. With
59:27
Speaker 8: there's new investments in there around youth homelessness and also
59:30
Speaker 8: the big changes or two big changes we're making in
59:33
Speaker 8: the tax system. And so the seventy five thousand extra
59:35
Speaker 8: owner occupies is the net effect of both negative gearing
59:38
Speaker 8: and capital gains, and that's because we think that the
59:42
Speaker 8: composition of the market, too many people are getting crowded out.
59:47
Speaker 8: What happened was in nineteen ninety nine, big change made
59:49
Speaker 8: to capital gains, and what it did was a decoupled
59:52
Speaker 8: people's incomes from house prices. And it meant that because
59:56
Speaker 8: the capital gain system was over compensating investment in existing
1:00:00
Speaker 8: houses and under compensating investment in other areas, more and
1:00:04
Speaker 8: more people were just plowing into the housing market and
1:00:07
Speaker 8: it was crowding out more and more, more and more people,
1:00:11
Speaker 8: including especially young people. And so that's really the challenge
1:00:15
Speaker 8: that we're trying to address to try and deal with
1:00:19
Speaker 8: that distortion which is crowded to many people out over time.
1:00:23
Glen: Hi Jim, Hi, Hi, thanks for having us blenned from
1:00:25
Glen: money money money. He quick question on negative gearing. I
1:00:30
Glen: borrow to invest in shares, I can still effectively offset
1:00:36
Glen: that loss against my tax bill in time. We're just
1:00:37
Glen: carving out property.
1:00:39
Speaker 9: Is that yes or yes?
1:00:40
Speaker 2: Yes?
1:00:40
Speaker 8: Because the I think something like ninety eight percent of
1:00:43
Speaker 8: negative gearing is property and so the focusing negative gearing
1:00:48
Speaker 8: is on property. The focusing capital gains is across the system,
1:00:54
Speaker 8: and again that's deliberate. We're trying to deal with the
1:00:57
Speaker 8: main challenges here around the fact that laboring come and
1:01:00
Speaker 8: other income is out of whack, the housing challenges that
1:01:03
Speaker 8: I mentioned, and the innovation challenge I mentioned.
1:01:06
Glen: A final question for me, and I've shut up. In
1:01:10
Glen: nineteen ninety nine Rapp Review said part of the change
1:01:13
Glen: in indexation to the discard method was to keep capital moving,
1:01:18
Glen: encourage investment into Australia and also carve out inflation. How
1:01:24
Glen: we're addressing the parts about ambition and investment.
1:01:28
Speaker 8: Yeah, well, there's a three and a half billion dollars
1:01:31
Speaker 8: worth of tax cuts which are all about investment and innovation.
1:01:35
Speaker 8: So if you look at the tax package, it's broadly
1:01:38
Speaker 8: neutral over the four years of the of the budget,
1:01:41
Speaker 8: and that's because what it raises it provides back in
1:01:45
Speaker 8: terms of a working strain tax offset, which is effectively
1:01:49
Speaker 8: increase the tax free threshold for people who work for
1:01:52
Speaker 8: a living. And it's got three and a half billion
1:01:54
Speaker 8: dollars where the tax cuts for benure capital for startups,
1:01:59
Speaker 8: for the more innovative and more dynamic parts of our
1:02:02
Speaker 8: economy because we want to encourage more of that. So
1:02:04
Speaker 8: across the board, it's very pro investment and innovation because
1:02:10
Speaker 8: we want to get that dynamism and productivity in our economy.
1:02:14
Vince: Yeah, we've got to get going folks.
1:02:17
Speaker 3: About Australia.
1:02:18
Speaker 7: Now, I was curious about the hop gainst task discount,
1:02:22
Speaker 7: So how that maybe the rewards to that, especially with
1:02:25
Speaker 7: the inflation adust in their stations or of tilts, the
1:02:28
Speaker 7: balance in failure of first home wise occupiers.
1:02:32
Vince: I'm just sort of.
1:02:33
Speaker 7: Really curious, especially looking at the rates or units. I
1:02:37
Speaker 7: was really curious about That's something that want of.
1:02:38
Speaker 8: Young people really want to Yeah, that's their first.
1:02:42
Speaker 9: Way is the property market, especially young people. It might
1:02:45
Speaker 9: be if the challenge sort of understands how you destation
1:02:49
Speaker 9: sort of works, so you really can sort of hear
1:02:52
Speaker 9: especially young people.
1:02:53
Speaker 3: And trains like that there.
1:02:55
Speaker 8: So we're talking about a capital gains discount. It used
1:02:57
Speaker 8: to be that when you sold something and you made
1:02:59
Speaker 8: money on your pay tax on half of it. Now
1:03:02
Speaker 8: your pay tax on the real game. So the bit
1:03:04
Speaker 8: that is an inflation and so a different calculation, but
1:03:06
Speaker 8: still taxed at marginal rates, all of those sorts of
1:03:10
Speaker 8: features of the tax system, just calculating the discount differently.
1:03:14
Speaker 8: And the really important thing to understand there is if
1:03:16
Speaker 8: you think about a couple of decades in between the
1:03:19
Speaker 8: how changing ninety nine am now the average over a
1:03:22
Speaker 8: couple of decades, what it showed was if you calculated
1:03:26
Speaker 8: the discount by indexation rather than the fifty percent flat,
1:03:31
Speaker 8: then what you see over that period is people who
1:03:34
Speaker 8: invested in existing homes got quite substantially overcompensated for their investments.
1:03:39
Speaker 8: Why people piled in, prices come up, people crowded out
1:03:42
Speaker 8: of the market, but units were not overcompensated and shares
1:03:48
Speaker 8: were not over compensated on average over that twenty year period.
1:03:50
Speaker 8: And so it's really about that big distortion that was
1:03:53
Speaker 8: created a quarter of a century ago and trying to
1:03:57
Speaker 8: address that, and trying to address that in a way
1:03:59
Speaker 8: that benefits particularly young people. You might take two more, Matt,
1:04:03
Speaker 8: because I just I saw some looks on faces when
1:04:05
Speaker 8: he said that was the last one. So two more,
1:04:08
Speaker 8: one more.
1:04:08
Speaker 7: After this.
1:04:10
Victoria Devine: Very much full of money. This is a big budget,
1:04:13
Victoria Devine: like there's just a lot for over. I feel like
1:04:15
Victoria Devine: I'm only halfway there. But what is one thing that
1:04:18
Victoria Devine: you were most proud of in this budget?
1:04:22
Speaker 8: Well, the thing I'm most proud of is when you
1:04:25
Speaker 8: sit down and put the budget together. We've had this
1:04:27
Speaker 8: huge disruption from the war in the Middle East, right,
1:04:30
Speaker 8: and a lot of governments would think, Okay, huge volatility
1:04:34
Speaker 8: in the world. We've got to do a fuel security package.
1:04:36
Speaker 8: We've got to cut fuel taxes because people are under pressure.
1:04:40
Speaker 8: We'll do some of that hard stuff later. That there's
1:04:42
Speaker 8: a real temptation to do that, if I'm honest. And
1:04:45
Speaker 8: the thing that I'm proudest of I'm and proudest of
1:04:47
Speaker 8: our colleagues about the PM all the way down is
1:04:51
Speaker 8: that we resisted that temptation. We didn't use the war
1:04:54
Speaker 8: in the Middle East as an excuse not to act
1:04:55
Speaker 8: on some of these intergenerational issues. And so it's really
1:04:59
Speaker 8: kind of like two budge.
1:05:00
Vince: It's in one is the near term.
1:05:02
Speaker 8: Stuff, inflation, petrol prices, war in the Middle East, fuel security.
1:05:07
Speaker 8: There's all of that stuff which in ordinary times would
1:05:09
Speaker 8: be big enough to be a budget on its own.
1:05:11
Speaker 8: I think you acknowledge that in your question. There's a
1:05:13
Speaker 8: lot here. It's broad, ambitious, But instead of doing that,
1:05:17
Speaker 8: instead of longer term stuff. We're doing that in addition
1:05:20
Speaker 8: to longer term stuff, and that's what I'm trying to
1:05:22
Speaker 8: stop one one.
1:05:23
Speaker 7: Then we're done.
1:05:26
Speaker 2: Right from cheap media.
1:05:29
Speaker 10: First of all, like credit where credits do good work
1:05:32
Speaker 10: on some of those tax reforms that you.
1:05:35
Speaker 2: Push through, you know, that's the contentious issue you guys
1:05:38
Speaker 2: for ages. But in terms of making choices of where
1:05:42
Speaker 2: to get more revenue into the budget and where to cut,
1:05:45
Speaker 2: I think one of the big things on lots of
1:05:47
Speaker 2: people's minds will be the gas tax.
1:05:50
Katy: And the luck they're of in the budget.
1:05:52
Speaker 10: How I think what I would want to ask is like,
1:05:55
Speaker 10: what would you say to people who are currently indis
1:06:00
Speaker 10: who feel like maybe they're facing the right of the
1:06:02
Speaker 10: cusps as opposed to corporations that could.
1:06:06
Speaker 2: Kind of put a lot more into the budget that
1:06:07
Speaker 2: could be dispersed across the community and some of the
1:06:10
Speaker 2: other things you're looking at investing in.
1:06:11
Speaker 8: Yeah, I think a couple of really important answers to
1:06:17
Speaker 8: those questions. First of all, spending on the NDIS continues
1:06:21
Speaker 8: to grow. I'm a huge supporter of the NDIS, and
1:06:27
Speaker 8: my view is we kind of had to save it
1:06:29
Speaker 8: from itself, you know, the risk was that the growth
1:06:32
Speaker 8: in spending on the NDS was going to become so
1:06:35
Speaker 8: extreme that some future government I think of a different
1:06:38
Speaker 8: political stripe to ours, would be tempted to knock it
1:06:40
Speaker 8: off or to do things which aren't in the interest
1:06:42
Speaker 8: of Australians with the disability. And so you know, we
1:06:45
Speaker 8: carry that responsibility heavily. We've created the NDOS, we believe
1:06:49
Speaker 8: in it. We're trying to save it. And what that
1:06:52
Speaker 8: means is spending is still growing, but growing more slowly,
1:06:56
Speaker 8: trying to make sure that we can afford to fund
1:06:58
Speaker 8: the services that people need and deserve. So I understand
1:07:01
Speaker 8: whenever you're making changes like.
1:07:03
Vince: That there's a level of anxiety. I get that.
1:07:06
Speaker 8: Similarly when it comes to the gas tax. Now, I
1:07:08
Speaker 8: want to be upfront with you and say, you know,
1:07:10
Speaker 8: I know that there's really strong views about it, and
1:07:16
Speaker 8: you know, of course I don't miss the very substantial
1:07:21
Speaker 8: campaigns that a number of you are running on social media.
1:07:24
Speaker 8: I get that there's a lot of strong views about it,
1:07:27
Speaker 8: and I understand the arguments that people are putting to us,
1:07:31
Speaker 8: but there's also really good reasons I think to prioritize
1:07:36
Speaker 8: two things. One now we're trying to get make sure
1:07:40
Speaker 8: we have enough fuel to keep the place ticking over.
1:07:42
Speaker 8: And so those two way supply arrangements with our partners
1:07:45
Speaker 8: in Asia, refining partners in Asia.
1:07:47
Vince: Are really important. Not everybody agrees with that, but I
1:07:49
Vince: think that.
1:07:51
Speaker 8: And secondly, this gas reservation thing that we announced on
1:07:54
Speaker 8: Thursday is a really big deal. Like it's a huge deal,
1:07:58
Speaker 8: and so we've prioritized those two things over changing the
1:08:01
Speaker 8: gas task for arrangements. Now, to assure you that I
1:08:05
Speaker 8: understand the arguments. In the first term, I changed the
1:08:08
Speaker 8: prit so we get a bit more revenue sooner. I
1:08:10
Speaker 8: know that people would have rather I do much more
1:08:13
Speaker 8: than that. Get that too, but I did change the
1:08:15
Speaker 8: arrangements to get more revenue sooner.
1:08:17
Vince: In the budget.
1:08:17
Speaker 8: There's about an extra one point six billion dollars. Again,
1:08:19
Speaker 8: I acknowledge that you would like there to be much
1:08:21
Speaker 8: more than that, but we have changed the arrangements. We
1:08:24
Speaker 8: are collecting a little bit more, and we're prioritizing those
1:08:27
Speaker 8: other two things, I think for good reason. Thanks very much, Edone,
1:08:30
Speaker 8: thanks to me more circula. Thanks everyone appreciate it.
1:09:02
Speaker 7: And that had