UltimateAlloy

@linzcom @AvidCommentator Yeah I know. My point is you can't take out more money on the loan of an exempted existing dwelling to buy other existing dwellings and get NG on them

@ultimatealloy @AvidCommentator It applies only to the purchase of existing dwellings. Everything else is fair game

@AvidCommentator @linzcom You can't do this. Those extra loans will be for the purposes of a different investment and won't be able to be negatively geared.

@linzcom If that is the case, that's wild, it effectively means a set of have and have nots when it comes to negative gearing on a permanent basis. It also means housing turnover could collapse.

@tax_oz @bnthompson I understand that, but small business owners are just not good at this stuff. The cash flow issues I'm talking about are already a thing now before payday super. When employers repeatedly get to the end of the quarter and do not have money to pay super, workers pay the price.

It’s not the employees money under current rules until it becomes payable which is after the end of the quarter in which wages are paid. Ideally they’d make a provision but until it’s due it literally isn’t an entitlement and is free to be used as a business sees fit. Of course it creates a cash flow issue when the govt changes the rules and brings the timing of the expense as much as 90+ days earlier.

Aussie small business owners are already pissed about Labor doubling CGT. Now wait until they realise PayDay Super creates a $148k cashflow crunch (on average) starting in June ‘26.

@SkullSpeedDeal @cosmicjester My big problem with it is just that there's already a huge cost incentive. Even with subsidies, childcare is super expensive and grandparents are free. I just don't think it will move the needle

@cosmicjester @ultimatealloy Look I'm not committed to it. My only thought would be that *someone* has to look after the child, I don't see how any rort doesn't involve someone eventually babysitting. I would include the parents in it, could be a tax rebate or something.

What is the ‘choice to use grandparents’ thing about? Is that illegal, or are they advocating for grandparents to get tax dollars to spend time with their own grandkids?

@SkullSpeedDeal @cosmicjester haha that's crazy, are you still in the discord?

@ultimatealloy @cosmicjester Yo, I used to play eu4 with you!

@SkullSpeedDeal @cosmicjester How many grandparents are free to look after the grandkids but refuse to do so unless they get the bag? This is just a "give free money to retirees" proposal

@cosmicjester Instead they should have a role paying complete strangers with barely any training to do it?

@bnthompson I don't think you should be able to use your employee's retirement money to pay your electricity bill.

@bnthompson One of the worst things regularly told to business owners in this country is to use money held for Super or GST for "cashflow". The average small business owner cannot handle this and it often results in their business falling over when they can't put the cookies back in the jar

@cosmicjester I think it probably was electoral poison in 2019 (granted I'm not sure we'll ever know for sure). A combination of more zoomers becoming adults and the obscene rate of price increases in the last 5 years or so really changed that.

All this talk for years and years that negative gearing was a third rail of Australian politics and it was electoral poison to get rid of it was complete nonsense lol.

@SydneyYIMBY The indexation change is literally saving them money and they don't even realise it. If CPI > the growth of their investment they won't have a tax bill!

We should build more homes in Sydney so investors here also complain about weak price growth.

@db_econ Probably my favourite article this year so far, great writing Dom

I agree this is cooked! inflectionpoints.work/articles/again…

@mentallyworld The greens have always let perfect be the enemy of good.

It’s not exactly the same policy but I’m just so confused on the pushback. I can’t vote for this party anymore.

@bowtiedstocks @tax_oz Doesn't work. That $1m loan is for the purpose of purchasing another existing property after 12/5/26 and isn't deductible.

@tax_oz $2m grandfathered propadee $500k loan Refinance to $1.5m loan Take the $1m out and buy another investment propadee for $1.2m that you get rent income on That works?

If I had a grandfathered negatively geared propadee Why wouldn’t I just continue to refinance it and max drawdown the loan against it forever ? Not sure there is anything preventing this

@Chidams_ @DavidShoebridge @fictillius e.g. If I go out in 5 years and buy an existing property somewhere and then refinance it later to buy shares, the budget does not have an effect. But at that point why not save the hassle and just invest with margin and get the tax deduction that way?

@Chidams_ @DavidShoebridge @fictillius This still gives an avenue for *any* owners of existing property (including future owners) continue to do the same. As long as the purpose of that part of the loan is not for an existing home purchased after the budget.

Economists are arguing if Labor’s ‘inter-generational’ housing reforms will reduce house prices by 0%, 1%, 3% or the outlier says 5% over time. All say rents will go up. Reminder the typical Australian home costs eight times more than the typical income. abc.net.au/news/2026-05-1…

@Chidams_ @DavidShoebridge @fictillius My understanding is that unlike CGT, the negative gearing changes only apply to real estate (which makes up ~98% of negative gearing). Under those circumstances you can still do this with shares on the loan of an existing property after the changes go into effect.

@ultimatealloy @DavidShoebridge @fictillius I was thinking along the lines of, if it’s positively geared, refinance it make up a reason let’s say - renovate as the banks asks what the funds are for, and re-draw to invest in etfs (debt recycling) making the whole debt negative geared again.

@drsmithy @Chidams_ @DavidShoebridge @fictillius Sure but you can say this about any type of tax fraud

@ultimatealloy @Chidams_ @DavidShoebridge @fictillius Pretty sure this something that's technically true but never investigated or enforced.

@Chidams_ @DavidShoebridge @fictillius It's the same reason why if you refinance a loan on an IP to buy a new PPOR, that portion of the loan isn't tax-deductible either.

@Chidams_ @DavidShoebridge @fictillius The tax-deductibility of a loan is related to the purpose of the loan, not the asset that it's loaned against. If they refinance to fund other purchases, I believe that portion of the loan would not be eligible for negative gearing.

@DavidShoebridge @fictillius Properties can't stay negatively geared forever. At some point over the next few years, the property will be come neutrally geared and it will naturally end.

@fictillius not with unlimited grandfathering