Latest / Money News / Half Your Pay: Australia's Rent and Mortgage Crisis 🚨💵🏠

Transcript

Half Your Pay: Australia's Rent and Mortgage Crisis 🚨💵🏠 · Money News

• 0:00
  S1: But first, tonight the property market remains a focus. Both
• 0:03
  S1: house prices and. This is a weekly story. And growing
• 0:08
  S1: is the issue of rents. And the irony of all
• 0:10
  S1: of this is that the government's tax changes over the
• 0:12
  S1: last few months have clearly applied pressure to the rental market,
• 0:17
  S1: which was already under strain and had already increased by
• 0:20
  S1: about $50 a week on average. So about $2,500 a
• 0:25
  S1: year over the last 18 months. Suddenly, interest rates have
• 0:29
  S1: gone up multiple times. You've had high levels of migration
• 0:32
  S1: as well, particularly in parts of the east coast of Australia.
• 0:35
  S1: Sydney and Melbourne. And then the federal government makes changes
• 0:39
  S1: to negative gearing and capital gains tax. And suddenly one
• 0:44
  S1: of the country's leading developers, Don O'Rourke, who, by the way,
• 0:47
  S1: we've spoken to multiple times on money news, he's got
• 0:51
  S1: about $1 billion worth of projects in the pipeline, knows
• 0:54
  S1: a thing or two about construction. And he's warning today
• 0:57
  S1: that Brisbane Alone could be facing a 20% rent increase
• 1:02
  S1: over the next two years. New data has also shown
• 1:05
  S1: that $130,000 a year no longer has you renting comfortably
• 1:10
  S1: in a lot of our capital cities. A lot of people,
• 1:13
  S1: particularly young Aussies, are also spending too much technically on
• 1:17
  S1: their mortgage. We're talking about 40% of household income combined,
• 1:21
  S1: going straight on to servicing the bank loan, which technically
• 1:25
  S1: puts you in what they call mortgage stress. But are
• 1:28
  S1: there green shoots coming through for the property market? Tom
• 1:31
  S1: Panos is one of the country's leading real estate experts
• 1:35
  S1: and the founder of Real Estate Gym. He's on the
• 1:37
  S1: line for us tonight. Tom, good evening to you.
• 1:40
  S2: Good evening James. Welcome back.
• 1:42
  S1: Thank you. Great to talk to you again. A bit
• 1:44
  S1: for us to get through. Firstly clearance rates from the weekend.
• 1:47
  S1: In summary. How did things play out in your mind again.
• 1:51
  S2: Look um it's not positive. Um we've had pretty much
• 1:56
  S2: March 12th, 14 weeks now where they're well under 60%. Um,
• 2:03
  S2: now what we're seeing, James, is the rest of the country.
• 2:06
  S2: Sydney and Melbourne were leading the way in the decline,
• 2:09
  S2: where clearance rates were the worst that we've seen in
• 2:13
  S2: some time. Um, but we've got to remember Sydney and
• 2:16
  S2: Melbourne started to go down before the budget. They started
• 2:19
  S2: to go down when rates started to get announced going
• 2:22
  S2: up late last year. James. But now what we're seeing
• 2:25
  S2: is Brisbane, Perth, Adelaide, um, and other parts of Australia
• 2:30
  S2: also declining that we're pretty resilient before, but overall, um
• 2:36
  S2: clearance rates, uh, don't look like they're getting any better.
• 2:41
  S1: Now you're at the coalface of all of this and
• 2:43
  S1: you do auctions generally every weekend. What is this as
• 2:47
  S1: an example, look like? Are there fewer people turning up? Uh,
• 2:51
  S1: are there not as many people bidding? Are there more
• 2:53
  S1: people observing? What does it actually look like on the ground?
• 2:57
  S2: Okay, so just for your audience, the auctions that take
• 3:02
  S2: place in Australia are in Sydney and Melbourne. Overall in Australia,
• 3:07
  S2: the method of sale that's used is private treaty, which
• 3:10
  S2: makes up about 85%. But in Sydney and Melbourne it's 50%.
• 3:16
  S2: So what are we seeing James? There is a drop
• 3:19
  S2: in volume. It is significant. We're talking about auction volumes
• 3:23
  S2: have dropped 40%. What that is saying, James, is vendors
• 3:28
  S2: are scared to go to auction. And the ones that
• 3:33
  S2: do go to auction, the withdrawals are so high we
• 3:37
  S2: haven't seen properties withdrawn like this in living memory. So
• 3:42
  S2: at the moment you've got vendors who don't have confidence
• 3:46
  S2: in the system. I myself, as you say, I do
• 3:49
  S2: auctions on the weekend. It is something that I've done
• 3:52
  S2: for around 30 years. And I can tell you even
• 3:56
  S2: getting people registered to register to actually bid is very,
• 4:00
  S2: very hard.
• 4:01
  S1: Um, so in summary, Tom, are they still turning up
• 4:05
  S1: or and they just observing more than people actively bidding.
• 4:09
  S2: Okay. So, um, in some parts of Sydney and Melbourne,
• 4:14
  S2: there are people that are showing up and looking in
• 4:17
  S2: other parts, they're not even showing up. But overall, I
• 4:21
  S2: can say to you is that, um, even the ones
• 4:24
  S2: that are showing up, they're not bidding. So what they're
• 4:26
  S2: doing is they're fascinated. There's due diligence, they're looking at
• 4:30
  S2: what's happening because it's trending so much, but they're not
• 4:33
  S2: pulling the trigger to bid and they're not buying.
• 4:36
  S1: Now in relation to spring. And spring is generally a
• 4:39
  S1: time where the property market can come back to life
• 4:42
  S1: if there has been a correction or a downturn. Do
• 4:45
  S1: you believe that spring is going to be the circuit
• 4:48
  S1: breaker that the property market means? Because the other interesting
• 4:52
  S1: element to all of this is we've had multiple interest
• 4:54
  S1: rate rises already this year, Tom, plus the tax changes.
• 4:58
  S1: The RBA will make its next decision on September 29th.
• 5:02
  S1: And there's a view that interest rates have to go
• 5:04
  S1: up again before they come back down. So what will
• 5:08
  S1: happen in spring in your mind.
• 5:10
  S2: Okay. So spring James, as you're correct, it is the
• 5:13
  S2: the real estate season. That's how, you know, let's call
• 5:16
  S2: it the State of Origin series season, September, October, November.
• 5:21
  S2: But at the moment it looks like we're going to
• 5:23
  S2: have a very low spring or a late spring. It's
• 5:26
  S2: too early to talk, but the listings that we expected
• 5:30
  S2: to be going up for auction in Sydney and Melbourne
• 5:32
  S2: are not at the level. What does this actually mean?
• 5:36
  S2: It might actually help prices because if you've got a
• 5:39
  S2: lower supply, it can, you know, keep prices from falling further.
• 5:45
  S2: But it's too early to tell whether we're going to
• 5:48
  S2: have a spring that's going to start in October. But
• 5:51
  S2: we know now September. It's not nowhere looking anywhere near
• 5:56
  S2: like spring's that we've had in previous years, interest rates
• 6:00
  S2: going up in late September, as you've indicated. I think
• 6:03
  S2: you said September. Did you say September 27th? Did you
• 6:06
  S2: is that correct?
• 6:07
  S1: Yeah. For the RBA. Yeah.
• 6:09
  S2: James that would be devastating. That would be devastating in
• 6:13
  S2: the marketplace. Um and it's concerning. Obviously we've got some
• 6:17
  S2: numbers that are going to come out over the next
• 6:19
  S2: month or so. Unemployment numbers. Um, we've also got obviously
• 6:23
  S2: the inflation numbers. We're looking at those numbers closely. Now.
• 6:28
  S2: Unemployment going up is a good sign that rates might
• 6:32
  S2: not go up. Um, and, and unemployment did go up
• 6:36
  S2: last week, but it was very, very, very slight. So
• 6:39
  S2: I don't think we're going to have a super sprint. James,
• 6:42
  S2: based on what I'm seeing.
• 6:44
  S1: Uh, the voice you're hearing is Tom Panos real estate
• 6:46
  S1: expert and the founder of real estate, Jim Tom. Just lastly,
• 6:50
  S1: in relation to rents, and you've got Don O'Rourke, who
• 6:54
  S1: knows a thing or two about property, the CEO of
• 6:56
  S1: Consolidated Properties, he's building about $1 billion worth of projects
• 7:00
  S1: in his pipeline. He's saying that rents are going to
• 7:03
  S1: go up 20% in the next few years in Brisbane alone,
• 7:07
  S1: but you would have seen some of these numbers reported. Today.
• 7:09
  S1: We're talking about 60% increases in parts of Sydney and
• 7:15
  S1: Brisbane and other parts of the country over the last
• 7:17
  S1: five years. I mean, for young people, it's very, very
• 7:20
  S1: hard for them to be renting and also saving for
• 7:24
  S1: a house. And then suddenly the tax settings change and
• 7:27
  S1: rents are going to go up again.
• 7:30
  S2: Yeah. Look, all you've got to do, the developer you're
• 7:33
  S2: speaking about is highly reputable and very successful developer. And
• 7:36
  S2: he's in good company with people like Stockland and Mirvac,
• 7:40
  S2: who last week have also indicated that they are going
• 7:43
  S2: to slow the amount of properties that they're building, not
• 7:46
  S2: build new ones that we were led to believe. Under
• 7:49
  S2: the new, um, budget that was going to encourage investors
• 7:52
  S2: to take advantage of new builds, that's not happening. And
• 7:56
  S2: you are absolutely correct. Rents are becoming extremely concerning. And
• 8:00
  S2: why this is concerning, James, is that if rents go up,
• 8:04
  S2: this is going to make this whole plan that the
• 8:07
  S2: government had, which was to help young people by even harder,
• 8:10
  S2: because people that are first home buyers are generally renting.
• 8:14
  S2: If rents are going up, they're not going to be
• 8:15
  S2: able to save for the deposit and be in a
• 8:18
  S2: position to actually buy a property. But it shouldn't be
• 8:21
  S2: a surprise. James, you've got a good mind. You know
• 8:23
  S2: how demand and supply is. You tax something, you get
• 8:26
  S2: less of it, you get less of it. People are
• 8:27
  S2: going to pay more rent. And it's exactly what everyone
• 8:30
  S2: was saying pre-budget and it's actually actualizing now.
• 8:33
  S1: Post-budget Tom. Well said. Great to hear your voice again.
• 8:36
  S1: We really appreciate your time on Money News tonight.
• 8:39
  S2: Thanks, James.
• 8:40
  S1: Tom Panos, the real estate expert joining us on the program.
• 8:43
  S1: Over to you. 131873. You would have heard and seen
• 8:48
  S1: this unfold in Australia over the last few months in
• 8:52
  S1: relation to the property market and now growing the strain
• 8:56
  S1: on the rental market as well. So where are we
• 9:00
  S1: heading on this? And if anyone's tried to sell a
• 9:02
  S1: property recently or buy a property. I'd be interested to
• 9:05
  S1: hear what you've seen on the ground at the auction,
• 9:09
  S1: whether it's been difficult. 131873. I mean, the rental data
• 9:14
  S1: is fascinating because for a lot of young people, they're
• 9:17
  S1: juggling between trying to work their way up through the
• 9:21
  S1: various tax brackets. And they're not obviously, let's say they've
• 9:26
  S1: just graduated from a study, tertiary study, maybe not, but
• 9:31
  S1: they're obviously, you know, at the lower end of the
• 9:34
  S1: income scale and trying to pay rent, juggle all the
• 9:39
  S1: other costs and also save for a house at the
• 9:42
  S1: same time. Not everyone gets a leg up from mum
• 9:46
  S1: and dad, and that is a reality. And you learn
• 9:48
  S1: today that if for someone that's on $100,000 a year
• 9:53
  S1: in northern WA, that's 64% of your rent. That is
• 9:59
  S1: consuming the largest proportion of income on the Gold Coast
• 10:03
  S1: for $100,000, 60% of your income is going to rent.
• 10:08
  S1: That's on the Gold Coast. It's 51%. In Sydney, it's 45%.
• 10:13
  S1: In Perth it is 43%. In Brisbane, it's 41% in Melbourne, 40%
• 10:23
  S1: in Canberra. And then that is for $100,000 for someone
• 10:29
  S1: that's earning just $70,000. And of course, there would be
• 10:33
  S1: a lot of situations generally where more than one person
• 10:36
  S1: would be contributing to the to the rent. But in
• 10:39
  S1: general terms, if you're trying to rent on your own
• 10:42
  S1: for just $70,000, well, if you're in northern WA, it's 87%
• 10:47
  S1: of your income. The Gold Coast 82%. Sydney 69% 55%.
• 10:54
  S1: In Melbourne 131873 is our open line number. That's according
• 10:59
  S1: to Priced Out. And for those figures alone, you have
• 11:02
  S1: to ask how does a young person pay rent? And
• 11:05
  S1: then also put the money together for a deposit of
• 11:09
  S1: at least 10%. But then you're probably paying lenders mortgage
• 11:12
  S1: insurance or 20%, which for $1 million home is $200,000,
• 11:20
  S1: 131873 is our number. Keen for your calls on that
• 11:24
  S1: issue and the real estate market at the moment. And
• 11:26
  S1: by the way, just tell me, what impact do you
• 11:29
  S1: think the tax changes are having on all of this,
• 11:32
  S1: both on negative gearing and capital gains tax, your calls
• 11:35
  S1: after this on money news, a lot of feedback on
• 11:38
  S1: the property market. No surprise there. Let's go straight to
• 11:40
  S1: your calls on Money News with James Willis. Steve is online. G'day, Steve.
• 11:45
  S3: Yeah, hi. I'm not into finance or anything like that,
• 11:48
  S3: but to me, looking at it clearly from, uh, the
• 11:52
  S3: price of houses has gone out of control simply because
• 11:55
  S3: the banks, 30 years ago, you could only borrow 2
• 11:58
  S3: or 3 times your wage, and suddenly they got deregulated
• 12:01
  S3: and said, oh, no problems. We can do it eight, nine,
• 12:04
  S3: ten times. So the prices just went over the top. Now,
• 12:08
  S3: there's no way you can get a cheap house because
• 12:11
  S3: the price, the prices are just too high. And the
• 12:13
  S3: people that are in trouble wanting to sell, they're not
• 12:16
  S3: going to go for a low price. So to me,
• 12:18
  S3: it's the bank's fault. They're making millions and billions of dollars, um,
• 12:23
  S3: through this when if they had just kept it, the
• 12:26
  S3: 2 or 3 times, housing prices would be a lot better. Um,
• 12:29
  S3: look at America. You can buy a mansion over there
• 12:31
  S3: for half $1 million.
• 12:33
  S1: Yeah. It's interesting. Steven, look, these are rough numbers, and
• 12:36
  S1: not everyone would be in this situation. But let's say
• 12:40
  S1: you had a combined household income of $200,000. According to
• 12:45
  S1: the CBA, you could potentially borrow up to $994,000, and
• 12:51
  S1: you'd be repaying $6,184 a month. Now, assuming that you
• 12:56
  S1: had a 20% deposit, um, and you actually worked out
• 13:01
  S1: those costs, it's probably about a 200 grand on a
• 13:04
  S1: $1 million house, probably a little bit more than that.
• 13:07
  S1: Let's say that one person earned $200,000, the other earned $100,000. Uh,
• 13:13
  S1: in this case, the bank will lend you $1.5 million,
• 13:18
  S1: and the repayments are $9,491 per month, per month, at 6.34%
• 13:26
  S1: over 30 years. Uh, that's with a significant deposit on top.
• 13:30
  S1: At that rate, you're also going to be paying stamp duty.
• 13:33
  S1: But then, of course, when one family decides, well, we
• 13:37
  S1: want to have kids and it removes one of those incomes,
• 13:40
  S1: that it makes it very, very hard. So if suddenly
• 13:43
  S1: you're in a position where you can afford to borrow
• 13:45
  S1: or buy a $2 million house, I mean, you're looking
• 13:48
  S1: at $11,000 a month every month for 30 years to
• 13:55
  S1: pay that loan off, and some months you'd be okay.
• 13:57
  S1: But when circumstances change. Well, it'd be very, very difficult
• 14:01
  S1: not to be in the technical definition of mortgage stress,
• 14:05
  S1: which is more than 30% of your household income on
• 14:08
  S1: the mortgage. Thanks for your call. Jeff's online. Hi, Jeff. Hello? Yes.
• 14:13
  S1: Go ahead.
• 14:15
  S4: Uh. Hi, James. Yeah, I live in the Caulfield area
• 14:19
  S4: and regularly attend auctions around and about the place and
• 14:22
  S4: have been doing so for quite a while.
• 14:24
  S1: Right.
• 14:24
  S4: I went to an auction on yesterday. On Sunday. Uh,
• 14:29
  S4: an immaculate home, four bedroom home, double garage in immaculate condition.
• 14:36
  S4: A couple of years ago, I reckon it would have
• 14:38
  S4: gone for 2 million.
• 14:39
  S1: Yep.
• 14:40
  S4: I opened with a vendor bid of 1.6 million and
• 14:43
  S4: there wasn't a single bid.
• 14:45
  S1: Is that right? Not one bid. Not a single registered bidder. Well,
• 14:49
  S1: that explains that's one example of what we're seeing. Jeff
• 14:51
  S1: and Tom Pannell said that the clearance rates have been
• 14:54
  S1: hovering around that 50%, well below 60% in Sydney and
• 14:58
  S1: Melbourne in particular, where the majority of the auctions are
• 15:03
  S1: held every weekend. A lot of texts will just come
• 15:05
  S1: through to a few of those right now. 0460 873 873. Michael
• 15:11
  S1: says w a specifically, Metro Perth and Regional WA offers
• 15:16
  S1: the cheapest major housing options compared to Sydney and Melbourne,
• 15:20
  S1: with average house prices in affordable pockets tracking roughly $200,000
• 15:24
  S1: to $400,000 lower than equivalent budget areas in Victoria and
• 15:29
  S1: New South Wales. Peter says how do people pay for
• 15:32
  S1: more rent on basic wages? Maybe your job will go.
• 15:36
  S1: Businesses close. There are a lot of people struggling like
• 15:40
  S1: ever before and they're very angry about government spending. 0460 873 873.
• 15:46
  S1: Chris says a four bedroom house with separate two bedroom
• 15:49
  S1: granny flat in top Ryde in Sydney. No one buying.
• 15:54
  S1: It's been on the market for a long period of time,
• 15:57
  S1: Peter says. James, who can honestly afford to live in
• 16:01
  S1: this country anymore? No one can live here. It's beyond
• 16:04
  S1: our means and sadly there are some people deciding how
• 16:06
  S1: many kids they can afford to have. Well, I've heard
• 16:09
  S1: those stories firsthand, Peter. 0460 873 873. Let's go to Andrew on
• 16:15
  S1: line five. Hi Andrew.
• 16:18
  S5: How are you going? How are you.
• 16:19
  S1: Mate? Good. Go ahead. What do you make of this?
• 16:21
  S5: I just think that negative gearing has been allowed to
• 16:24
  S5: get completely out of control. I think, you know, like
• 16:26
  S5: it's okay if you want a negative gearing to the
• 16:28
  S5: housing market. But there's some people out there that have
• 16:31
  S5: got portfolios of 50 to 100 homes.
• 16:34
  S1: Well that's right.
• 16:35
  S5: Of course, the banks, the banks are going to loan
• 16:37
  S5: you as much money as you want. And why would
• 16:39
  S5: you care about what the price of the home is
• 16:41
  S5: if you go to auction?
• 16:42
  S1: Yeah. For an average investment property. Andrew, we are well
• 16:45
  S1: below $1 million for an average investment property. The difference
• 16:49
  S1: if you can use negative gearing or not, is generally
• 16:53
  S1: with the average bank, hundreds of thousands of dollars.
• 16:58
  S5: Yeah.
• 16:58
  S1: So it doesn't it doesn't make it a fair fight.
• 17:00
  S1: And look. Do you know what I don't I don't
• 17:03
  S1: really really. I think that the government was had its
• 17:07
  S1: hands tied behind its back. And I think there have
• 17:09
  S1: been some areas of the property market that have been
• 17:11
  S1: allowed to explode because of a combination of various tax changes,
• 17:16
  S1: and I would have been far more comfortable with the
• 17:19
  S1: government capping the number of properties that someone could use
• 17:25
  S1: these tax benefits towards and run their quote unquote, business
• 17:30
  S1: as their investment properties with a loss through negative gearing.
• 17:35
  S5: But I think that's right.
• 17:37
  S1: That would have been a far more sensible thing to
• 17:39
  S1: do to cap it at whatever the fairest or most
• 17:42
  S1: common number of properties for the average mum and dad investor,
• 17:46
  S1: which could have been 2 or 3.
• 17:48
  S5: Well, I think the thing is, with the home, the
• 17:50
  S5: homes for families to have kids and children and grow
• 17:53
  S5: up and suburbs, and that's what that's for, you know,
• 17:57
  S5: and you can invest your money in all sorts of places.
• 17:59
  S5: You can go in any park and you can negative
• 18:01
  S5: gear anywhere you want. But once you've got the monopoly
• 18:04
  S5: boards being taken up by a lot of money, of
• 18:07
  S5: course it becomes a speculative thing. And then there's more
• 18:09
  S5: money that has to get into to get in. And
• 18:11
  S5: of course, the people who are trying to start, they
• 18:13
  S5: can't get in.
• 18:13
  S1: Well that's right. And of course, Andrew, as part of
• 18:16
  S1: the new tax settings, you can still take advantage of
• 18:19
  S1: negative gearing if you're building a new property. So that
• 18:22
  S1: will hopefully help supply even though the numbers haven't been
• 18:25
  S1: great on that. And of course, the government has banned
• 18:27
  S1: people from borrowing money through their self-managed super fund to
• 18:32
  S1: buy a property as well. So there are some tax
• 18:34
  S1: settings that I don't agree with, but I also think
• 18:37
  S1: that something had to give with the negative gearing and
• 18:40
  S1: capital gains tax, but I would have capped it on
• 18:43
  S1: a certain number of properties rather than say from this date.
• 18:48
  S1: From now on, for all young people who would maybe
• 18:51
  S1: wanted to save and put every cent they had into
• 18:53
  S1: an investment property, to instead be saying, no, you can
• 18:57
  S1: no longer have that tax benefit that has existed for decades.
• 19:01
  S1: One last call before a break. Dion's online. Hi, Dion.
• 19:05
  S6: Good day. How are you? James.
• 19:06
  S1: Good mate. Go ahead.
• 19:08
  S6: Good. I was just going to say we bought an
• 19:10
  S6: investment property using equity in our house, you know, four
• 19:13
  S6: years ago. And, you know, we saw the interest rate rises.
• 19:17
  S6: I had to, you know, 11 in a row or
• 19:18
  S6: whatever it was. Um, you know, it just ignore everything
• 19:23
  S6: you've got to pay in terms of, you know, insurance
• 19:25
  S6: and the capital gains or sorry, the um, land tax, etc., etc..
• 19:31
  S6: We just, we just sold it on the weekend and
• 19:33
  S6: it only sold for an extra 60 grand on top
• 19:35
  S6: of what we bought it for. But that doesn't include
• 19:37
  S6: all the additional taxes on top of that. So it
• 19:40
  S6: was just a loss every year. And the government thinks
• 19:43
  S6: that people that have an investment property are doing well.
• 19:45
  S6: But it was hard to do. We were losing money
• 19:47
  S6: on it, you know.
• 19:48
  S1: That's right. Is this in Victoria?
• 19:51
  S6: It is in Victoria, yeah.
• 19:52
  S1: Yeah. Were you paying crazy levels of land tax as well?
• 19:55
  S6: Exactly. So, you know, and as I said, we used
• 19:58
  S6: the equity in the house. So it's not like we
• 20:00
  S6: had the deposit at front. So there's two loans out
• 20:03
  S6: on that. And then yeah, so it was just it
• 20:05
  S6: was just terrible. It was a terrible investment. Um, we're
• 20:08
  S6: probably probably overall, after everything over the four years we
• 20:12
  S6: ran at a loss.
• 20:13
  S1: Well and Dion this is a major issue I have
• 20:16
  S1: with what the government did in this space across not
• 20:18
  S1: just property but on shares, on taking risks with companies,
• 20:22
  S1: is that there are people that have their money that
• 20:26
  S1: they could easily put into the bank at 4 or 5%
• 20:30
  S1: and just let that take over. But instead, they've said, no, no, no,
• 20:33
  S1: I'm going to invest in an Australian company and I'm
• 20:36
  S1: going to take a risk and put every cent that
• 20:38
  S1: I have into a share portfolio, or I'm going to
• 20:40
  S1: give it to a capital investment fund, or I'm going
• 20:43
  S1: to put it into an investment property and try and
• 20:46
  S1: sell that one day for a period of time. And
• 20:48
  S1: the government said, well, this 50% discount on your capital gains,
• 20:53
  S1: which was a reward for taking risk, growing your own wealth,
• 20:57
  S1: and inevitably, one day not having to rely on the
• 21:00
  S1: government as much down the track through a pension or perhaps,
• 21:04
  S1: you know, through certain levels of aged care or whatever
• 21:06
  S1: the government support may be. The idea was to help
• 21:10
  S1: and encourage you to grow your wealth. And in one
• 21:13
  S1: fell swoop, as a major tax grab, they have removed
• 21:16
  S1: that once and for all. And I think it's a
• 21:18
  S1: terrible policy.