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💰 Brooklyn breaks down the Federal Budget... · The KIIS Breakfast Wrap with Chris, Amy & Jack

• 0:04
  Speaker 1: Oh, budget, last night, you're watching it.
• 0:06
  Speaker 2: I'm sure all about the money. Yeah, I was watching it,
• 0:09
  Speaker 2: but it is so boring, like you can't watch it
• 0:11
  Speaker 2: for that long.
• 0:12
  Speaker 3: He stands up there for half an hour and they
• 0:14
  Speaker 3: treasure and talk them tune in for that.
• 0:16
  Speaker 1: Yeah, yeah, like a lot of people do. Yeah.
• 0:19
  Speaker 2: Right, So it's I want to ask you, Mayo. I'm
• 0:22
  Speaker 2: glad you're here. Actually, I want to ask you. Do
• 0:25
  Speaker 2: you know what negative gearing is?
• 0:27
  Speaker 1: No?
• 0:27
  Speaker 4: Clear?
• 0:28
  Speaker 2: Okay, great. By the end of this segment, hopefully you
• 0:31
  Speaker 2: have more of a clue. So right before the last election.
• 0:35
  Speaker 2: This audio is from one month before the last election. Okay,
• 0:39
  Speaker 2: have a listen to what Albo said about negative gearing.
• 0:42
  Speaker 2: Can you rule out any changes to negative gearing and
• 0:45
  Speaker 2: capital gains?
• 0:46
  Speaker 1: Yes?
• 0:47
  Speaker 5: How hard is it? For the time?
• 0:49
  Speaker 1: Right?
• 0:50
  Speaker 2: So fifty times I guess Elbow lied and said that
• 0:54
  Speaker 2: he would not be changing negative gearing, and last night
• 0:57
  Speaker 2: they've changed negative gearing. So it's a big broken election promise.
• 1:02
  Speaker 2: But Albo's saying it's worth breaking the promise because he
• 1:05
  Speaker 2: believes in it that much. Now, let's decide whether we
• 1:08
  Speaker 2: believe it and negative gearing. What it is, Mayo, is
• 1:11
  Speaker 2: if you are a property investor. So you own a
• 1:14
  Speaker 2: house and then you rent it out even if you
• 1:17
  Speaker 2: lose money on it. So your rent's not high enough
• 1:19
  Speaker 2: and you're losing money, you can claim that loss off
• 1:23
  Speaker 2: your income tax. So it's kind of a win win,
• 1:26
  Speaker 2: like you're never going to lose that badly because of
• 1:28
  Speaker 2: negative view.
• 1:29
  Speaker 4: So like when you do your tax with the accountant,
• 1:32
  Speaker 4: you can ask for more money because you've lost there.
• 1:34
  Speaker 5: You get a bigs return.
• 1:36
  Speaker 2: Yeah, okay, So I actually have the one negatively geared property,
• 1:40
  Speaker 2: which is the place I built. Remember it had no
• 1:43
  Speaker 2: grasp for HS that place. I don't leave in it anymore.
• 1:46
  Speaker 2: Someone's renting it, so it's negatively geared because of that,
• 1:50
  Speaker 2: and I rent somewhere else, which is kind of like
• 1:52
  Speaker 2: what this encourages. I think like rentfesting, rent where.
• 1:57
  Speaker 5: You want to live, but own where you can afford.
• 1:59
  Speaker 3: And I've got investment of property as well, same thing.
• 2:01
  Speaker 3: I negatively gear it. So I make a loss right
• 2:05
  Speaker 3: because of the you can take the mortgage interest and
• 2:07
  Speaker 3: everything offered. Yeah, and then I get money back.
• 2:10
  Speaker 5: Yeah, it's actually pretty good.
• 2:12
  Speaker 2: And this has been around since the early nineties, so
• 2:16
  Speaker 2: all of our sort of parents and that older generation
• 2:19
  Speaker 2: have benefited from this system for so long. House prices
• 2:23
  Speaker 2: have gone up so much over this time, and it's
• 2:26
  Speaker 2: why they say you can't lose in property because of
• 2:29
  Speaker 2: this base.
• 2:30
  Speaker 1: However, Brooklyn, can I just bring up one point.
• 2:32
  Speaker 3: This is not going to affect you or me or
• 2:34
  Speaker 3: anyone that is already currently negatively geared.
• 2:37
  Speaker 5: No, So it's only.
• 2:38
  Speaker 3: Going forward, right, so like we can keep negative gearing
• 2:41
  Speaker 3: for the next forty years.
• 2:42
  Speaker 2: The changes that were announced last night, Mayo, is anyone
• 2:44
  Speaker 2: that's already that already owns a property and is negatively
• 2:47
  Speaker 2: gearing it stay at.
• 2:49
  Speaker 5: Stage, they're not affected.
• 2:51
  Speaker 2: But from today or from last night actually when it
• 2:54
  Speaker 2: was announced in the budget. If you buy a property
• 2:57
  Speaker 2: from now, that's an existing property, so it's already built,
• 3:00
  Speaker 2: you can't negatively gear anymore.
• 3:02
  Speaker 5: So they're getting rid of it.
• 3:03
  Speaker 4: But that means technically no one would want to have
• 3:06
  Speaker 4: an investment property, right because they'd be too scared of losing.
• 3:09
  Speaker 2: Well, you could still get one if your rent is
• 3:12
  Speaker 2: high enough, like if you're going to actually make money because.
• 3:15
  Speaker 4: Your rent you're ripping off the renters.
• 3:17
  Speaker 2: Yeah, Well, that's what people say, is it's only going
• 3:19
  Speaker 2: to push up rents and.
• 3:21
  Speaker 4: It's already hard, like people are trying to get like
• 3:24
  Speaker 4: their rent lower lower because of cost of living. Isn't
• 3:26
  Speaker 4: that just going to make a situation.
• 3:28
  Speaker 3: The counter to that is less investors means it's more
• 3:30
  Speaker 3: affordable for people that want to.
• 3:32
  Speaker 1: Live in there to get in.
• 3:34
  Speaker 2: Yes, exactly, So we're not going to push everyone first
• 3:36
  Speaker 2: home buyers. They want to get some of the investors
• 3:39
  Speaker 2: out of the market a bit.
• 3:41
  Speaker 1: First time negatively geared homes.
• 3:44
  Speaker 5: Yeah.
• 3:46
  Speaker 3: Portfolio Yeah, like I've got one, you got one, like
• 3:49
  Speaker 3: most people they have one, But.
• 3:50
  Speaker 2: I not hate them, but it's the system that they're
• 3:54
  Speaker 2: in that it's so good to actually do that. So
• 3:57
  Speaker 2: Albow's basically saying the whole idea of buying property and
• 4:01
  Speaker 2: you just can't lose on that investment and you're gonna
• 4:04
  Speaker 2: make literally millions over the.
• 4:06
  Speaker 5: Next couple of decades.
• 4:09
  Speaker 2: He wants to get rid of that idea and property
• 4:11
  Speaker 2: should be more of Every Australian deserves to own a
• 4:15
  Speaker 2: house for them to live in. Yeah, that's fair, get
• 4:17
  Speaker 2: more back to that.
• 4:19
  Speaker 4: I think that's like, I like, she likes it.
• 4:26
  Speaker 2: Albo changed an election promise within one years. They all
• 4:31
  Speaker 2: like should they should they.
• 4:33
  Speaker 4: No, But it's just I feel like that just happens
• 4:35
  Speaker 4: no matter which country you're in, there's always some sust stuff.
• 4:41
  Speaker 2: I think it's good what he's doing, and no one
• 4:43
  Speaker 2: that's currently negative le gearing will be affected. So it's
• 4:46
  Speaker 2: only a slight change. Yeah, but it's one year later
• 4:51
  Speaker 2: and he's completely gone.
• 4:53
  Speaker 5: Back on what he said. I said that fifty times.
• 4:56
  Speaker 5: I'm not going to change negative clearing or you did.
• 5:00
  Speaker 4: He has to be more careful than I think, even
• 5:02
  Speaker 4: doubling down.
• 5:02
  Speaker 2: I've said it fifty times. How hard is.
• 5:04
  Speaker 1: It like he wants to how's he explaining at Brooklyn?
• 5:07
  Speaker 2: He's he's just saying that there are so many more
• 5:10
  Speaker 2: young people.
• 5:10
  Speaker 4: Now struggling, which is true.
• 5:12
  Speaker 5: Yeah, he's like.
• 5:13
  Speaker 2: Saying, there are more younger voters than older voters now,
• 5:16
  Speaker 2: so we're doing what they need to happen.
• 5:18
  Speaker 3: Yeah, you ever heard this saying it's like, well, when
• 5:20
  Speaker 3: the situation changes, I'd changed my mind.
• 5:23
  Speaker 2: Situation hasn't changed in twelve months.
• 5:26
  Speaker 1: Well, I think I'm saying, like war and.
• 5:28
  Speaker 4: Everything, people have been struggling to buy houses for longer
• 5:32
  Speaker 4: than that's true.
• 5:35
  Speaker 2: We all now get to just judge him on it,
• 5:37
  Speaker 2: do we think it's good enough to accept that it
• 5:39
  Speaker 2: was a broken election promise.
• 5:41
  Speaker 1: Yeah.
• 5:41
  Speaker 3: I mean a lot of people calling in, so I
• 5:43
  Speaker 3: suppose do you think it's a good thing? Yeah, look
• 5:45
  Speaker 3: at the front. Do you think it's a good thing?
• 5:47
  Speaker 3: Or he is breaking a promise? That's kind of what
• 5:49
  Speaker 3: it's going to come down to.
• 5:50
  Speaker 5: Right, Yeah.
• 5:51
  Speaker 4: Well, if it helps people get their first home, I
• 5:53
  Speaker 4: think it was the right decision.
• 5:55
  Speaker 1: Well, Kathy, you're fired up by your Hi, Kathy, go
• 5:58
  Speaker 1: for it.
• 6:00
  Speaker 6: This affects nobody but the mom and dad investors that
• 6:03
  Speaker 6: are trying to get into, you know, build a future
• 6:05
  Speaker 6: for their kids and their grandkids. Their polligues who already
• 6:08
  Speaker 6: have twenty and thirty investment properties, they're not affected. They'll
• 6:12
  Speaker 6: still be making their millions from it. But anyone that's
• 6:14
  Speaker 6: trying to get into the market now to help their
• 6:16
  Speaker 6: families and their kids and grandkids, oh no, we can't
• 6:19
  Speaker 6: help them.
• 6:20
  Speaker 5: Now.
• 6:20
  Speaker 6: This isn't going to help nobody but the pollyge.
• 6:22
  Speaker 2: Do you want your kids to be able to afford
• 6:25
  Speaker 2: their own house?
• 6:26
  Speaker 4: Of course I do.
• 6:27
  Speaker 6: But this is not going to help Brooklyn. This is
• 6:30
  Speaker 6: not going to help. This just makes the richer richer,
• 6:32
  Speaker 6: and the poorer, poorer.
• 6:33
  Speaker 3: All right, Hey, how about the fact that did you
• 6:36
  Speaker 3: touch on that you can still negatively gear a new property.
• 6:39
  Speaker 5: Yes, exactly, so you still do it.
• 6:41
  Speaker 2: You can as a going forward Now, Mayo, if you
• 6:43
  Speaker 2: want to get in on the negative gearing bandwagon, which
• 6:46
  Speaker 2: is pretty good, you just have to construct a new home. Ah,
• 6:50
  Speaker 2: build one, build one, which could be an apartment, could
• 6:53
  Speaker 2: be you know in the suburbs. Build a new house
• 6:55
  Speaker 2: so they would encourage more new homes to be built
• 6:59
  Speaker 2: and take investors out of the existing home market.
• 7:02
  Speaker 1: I think Sarah's got a You've got a different point
• 7:04
  Speaker 1: of view. Hollo, good morning, Hi, good money.
• 7:07
  Speaker 2: Hi.
• 7:07
  Speaker 1: What do.
• 7:09
  Speaker 7: I think? Like you know, in every other form of investing,
• 7:12
  Speaker 7: there's a chance of the risk of losing money, and
• 7:15
  Speaker 7: I think harding should be the same. Like, if you
• 7:17
  Speaker 7: want to invest to gain money, there's that risk of
• 7:20
  Speaker 7: losing Everyone deserves the chance to have a house, like
• 7:23
  Speaker 7: I don't think it should be just like Okay, you
• 7:25
  Speaker 7: have a house as an investment, you're definitely gonna win
• 7:27
  Speaker 7: money or gain money.
• 7:29
  Speaker 2: Yeah okay, yeah, Well we Australia would do better if
• 7:32
  Speaker 2: more of our money was invested into businesses.
• 7:36
  Speaker 1: We're not homes.
• 7:36
  Speaker 2: Yeah, we just relied on oh just by by, you know,
• 7:39
  Speaker 2: three four homes and we're good.
• 7:42
  Speaker 4: Yeah, it's pretty they announce anything about like giving more
• 7:45
  Speaker 4: grants to young people to be able to afford homes,
• 7:49
  Speaker 4: because I feel like there hasn't been many changes with that,
• 7:51
  Speaker 4: Like it seems like they haven't got much help. And
• 7:53
  Speaker 4: I know from going to auctions and stuff, you're constantly
• 7:56
  Speaker 4: beaten by I guess I feel like older actually.
• 8:00
  Speaker 2: Restor is usually yeah, but it's I can't with the grands.
• 8:04
  Speaker 2: What they say is that when there's a grant for
• 8:07
  Speaker 2: young people, all that's really doing is giving young people.
• 8:12
  Speaker 2: Oh I don't know what that was. Could hear your voice?
• 8:14
  Speaker 1: Given?
• 8:14
  Speaker 2: Yes, But a grant is only pushing up demand. So
• 8:18
  Speaker 2: when more people have more money because they've got a grand,
• 8:21
  Speaker 2: suddenly everyone can bid higher and its prices even higher again.
• 8:25
  Speaker 2: So something like this that's like more structural change is
• 8:30
  Speaker 2: probably better in the long run.
• 8:31
  Speaker 4: Sorry, one more thing, because I know it.
• 8:33
  Speaker 1: Almost it stops, So this is now just awkward.
• 8:35
  Speaker 3: It's like radio now.
• 8:39
  Speaker 1: I guess it's happening.
• 8:42
  Speaker 4: But you know, there's always cost of living. The supermarket
• 8:44
  Speaker 4: prices are ridiculous that's anything to fix that.
• 8:47
  Speaker 2: Or they're giving you like two hundred and fifty dollars
• 8:50
  Speaker 2: basically of twenty eight Yeah, next year, hoping it's nothing worse.
• 8:56
  Speaker 3: You want the government to make groceries cheaper?
• 8:59
  Speaker 1: Is that right?
• 9:00
  Speaker 2: For sure?
• 9:00
  Speaker 1: How that's the thing.
• 9:03
  Speaker 3: Everyone wants something, and it's like you.
• 9:05
  Speaker 4: Have, well, give to the people that are I guess producing.
• 9:09
  Speaker 1: The products, Give to the farmers.
• 9:11
  Speaker 4: Give to the farmers, give to the I don't know,
• 9:13
  Speaker 4: the companies that are making all these things money.
• 9:15
  Speaker 2: It's a big You're going to have a petral cheaper,
• 9:18
  Speaker 2: electricity cheaper that actually gets that stuff down, which is
• 9:22
  Speaker 2: hard to achieve.
• 9:22
  Speaker 1: What's up next on the ABC?
• 9:24
  Speaker 2: Oh look, we're going to take your calls.
• 9:26
  Speaker 5: What's your favorite bird