Guided Investor

One of the positives of the proposed CGT changes is the grandfathering provisions.

Growth accrued before 1 July 2027 is proposed to remain under the existing rules, rather than forcing everything into the new system overnight.

That’s good news for existing investors.

But the trade-off?

Potentially a LOT more complexity when calculating CGT moving forward.

In many cases, investors may effectively need two separate CGT calculations on the same asset:

- one under the old rules up to 1 July 2027; and
- another under the proposed indexed system after that date.

For shares, that’s manageable.

For property? A bit harder...

Negative gearing is NOT being abolished… but the proposed changes are still massive.

The Federal Budget could fundamentally change property investing, housing affordability, rental markets and where investors put their money moving forward.

In this deep dive, I break down what’s actually changing, who is impacted, the grandfathering rules, the likely impact on property prices and rents, and why commercial property and shares may benefit.

Most importantly… will this actually help younger Australians get into housing?

Full video linked in the comments.

Interest rates up again — another 0.25%. Third rise this year.

Why?

Inflation is still running hot. Oil prices have played a part, but it’s broader than that — housing, services and everyday costs are all sticking around.

Interest rates are the mallet used by the RBA to cool things off.

They hit spending by making debt more expensive. Less money left after the mortgage = less demand across the economy… and that’s how inflation gets pulled back under control.

What does it mean for you?

Inflation → your groceries and bills stay high
Interest rates → your mortgage costs more
Markets → higher rates can weigh on shares and property (at least in the short term)

But it’s not all bad news…

Higher rates → better returns on cash and defensive assets (retirees rejoice)
Volatility → creates opportunities to invest at better entry points (accumulators be at the ready)
Cycles → this is part of how markets and economies move

Stay the course.