Young investors accept 'party had to end' but rethink plans after CGT changes
Young investors are adjusting their financial plans following proposed capital gains tax changes in Australia. The reforms aim to create a fairer tax system and improve housing affordability, but many young investors are concerned about the potential financial impact. While the changes may benefit some, they are seen as disproportionately favoring older and wealthier Australians.
- ▪The federal government's proposed CGT changes will replace the 50% discount with cost-base indexation starting July 1, 2027.
- ▪Young investors like Vanessa are worried about the impact of these changes on their investments in ETFs and shares.
- ▪The Parliamentary Budget Office estimates that 82% of the current CGT discount benefits flow to the top 10% of income earners.
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Young investors accept 'party had to end' but rethink financial plans after budget CGT reformsBy business reporter Lin LinTopic:Housing PolicyTue 19 May 2026 at 4:43amTue 19 May 2026 at 4:43amTue 19 May 2026 at 4:43amYoung ETF investor Vanessa says the budget is a "step in the right direction" but expects to take a financial hit. (Supplied)abc.net.au/news/young-investors-feel-budget-cgt-change-impact-on-etfs-rentvest/106693292Link copiedShareShare articleVanessa has a plan to get ahead financially: work hard, save carefully and invest early.The 28-year-old high school teacher started buying exchange-traded funds (ETFs) at 18, hoping it would help her build financial security, when the housing market felt increasingly out of reach.Originally from Melbourne, she moved to Margaret River in…
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