How changes to CGT and negative gearing could change the way Australians invest | The Business

Tuesday night’s federal budget is shaping up to be more impactful for investors of equities than any other budget in recent years.
The proposed changes by Treasurer Jim Chalmers to capital gains tax are expected to apply to investors of all asset classes, not just those with interests in property.
UBS strategist Richard Schellbach joined The Business for a budget preview. He says if proposed changes to the capital gains tax discount – from a 50 per cent discount to one indexed to inflation – materialises, that will likely see a shift in investor behaviour and translate into a ‘pivot away from growth equities and capital gainers towards income and dividend-paying equities’.
“For the last decade, if not two decades, property investments have overwhelmingly been the preferred source of investment for particularly retail investors through Australia … Therefore, the levelling of the playing field through these proposed or possible tax changes make equities a more competitive and interesting space.” He said.
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