Chalmers Enters Politics Area That Was Avoided

By Ian Verrender

Topic is Property Prices

Treasurer Jim Chalmers chose the hard road of reform in his budget speech

A federal budget usually doesn't look too far beyond the next election

The annual budget is usually a chance for treasurers to update promises and offer tax cuts

This year is different

Federal budget updates are available

Treasurer Jim Chalmers changed tax breaks for the wealthy

Labor was defeated twice in the past decade

The idea of ending tax breaks for property investment seemed dead

But now it's back

There's not much outrage about the budget leaks

Critics are mostly talking about rental property shortages

People are upset

The political establishment is under attack worldwide

Voters are moving to extreme parties

This is happening in Australia too

The government will change negative gearing and capital gains tax

Labor is under pressure despite having a big majority

The economy is the main issue

Globalization hurt workers in the US

Young Australians are unhappy about property prices

Ignoring this issue could hurt any party

The Budget Explained

Topic is Federal Government

Topic is Explainer

Analysis by Annabel Crabb

The pendulum swings

Budgets are not just about debt and deficits

We want to know what issues matter to you

Budgets can redistribute wealth and income

Australia has a progressive tax system

Higher income earners pay more tax

The pendulum has swung towards workers

Property investment was a way to build wealth

Negative gearing and capital gains tax are issues

Real estate has increased in value

Tax benefits have cost the nation

A Treasury study showed the cost of negative gearing

The benefits go to high income earners

Australia has high-priced real estate

Will the budget changes work?

Taking away tax incentives is hard

The changes are not tax hikes

The changes will bring in some money

The changes are limited because of grandfathering

Existing investors will still get benefits

Without grandfathering, there would be backlash

Property prices might have dropped

First home buyers might have benefited

The changes will have a small impact at first