Don’t Over React (Budget Announcement)
I know many of us are quite unhappy with the proposed changes from tonight’s budget.
It’s worth noting that the people this reform was supposedly designed to help — lower income Australians who can’t afford property and are building wealth through ETFs — arguably get hit hardest by the 30% minimum CGT floor. For someone on $45k, that minimum exceeds their normal marginal rate. The irony is significant.
That said, I’d strongly advise against throwing in the towel on your ETF strategy tonight:
Budget announcements regularly get watered down before passing as legislation. The government has explicitly flagged further stakeholder consultation — that’s where carve-outs get negotiated.
Strong political pushback is already forming from the startup sector, crossbenchers, and industry super funds — particularly around the regressive impact on ordinary investors.
Shares don’t compete with first home buyers for housing stock. There’s no clear policy rationale for treating ETFs the same as investment properties, which makes a carve-out politically viable.
Be optimistic and don’t do anything rash one night after a budget announcement. Have a good night everyone!