I Think The Elite Want To Turn Australian Workers Into Lifelong Renters

Added: 2026-05-25

[00:00:00]Hi, my name's Chris and I live in Australia and we've just gone through a a budget in the country where there's been a lot of changes to capital gains tax where there's been changes to negative gearing and my question is who's the winners, who's the losers here and I've been watching the mainstream media. I've been watching all the releases and everything like that and it it's still not clear to me why did they go after capital gains taxes from shares from cryptocurrency.

[00:00:29]Uh why why do they do that? So I thought I'd have a run through and I've got some thoughts and a bit of an expose potentially. I don't know if follow my train of thought on this one that a lot of people have just been ripped off and there's a giant wealth transfer occurring. Now, if these changes across the capital gains tax discounts uh was to make housing cheaper, to make housing more affordable, that that's that's what they were saying, right? These politicians, they were saying, "We're going to make housing more affordable."

[00:00:56]And they've removed capital gains tax discounts. Well, why didn't they just remove the discounts to housing? Why did they apply it across to crypto, across to shares, across to businesses selling up? Why did they apply these changes across to that kind of stuff? So I started to follow the money. Now when you start to follow the money, you start to find the really big money in the country. And the super the super sector, superanuation sector, it's worth $4.5 trillion.

[00:01:28]$4.5 trillion sector. And they lobbyed, they lobbyed hard on this budget not to have anything for themselves change. So I start to have a closer look at that.

[00:01:39]The super funds, they kept their existing rates, a 15% capital gains tax, only 15%. And if the asset is held for more than one year, they get a 30% 33% discount, a third discount on their gain. So, they're keeping a third of their capital gains discount, which brings their effective tax rate down to 10% on a capital gain if it's held for over a year. Whereas everyone else, they've lost it. It's been removed from the the individuals, from the investors.

[00:02:10]It's been removed. It's gone. But they've kept theirs from lobbying. When it comes to businesses selling up, so a business, we've been seeing that trending all across social media, haven't we, guys? Business is saying that uh if we sell our business, we're going to be taxed at a 47% rate. And super funds, well, if a super fund buys a business and then they sell a business, what's their tax rate going to be? Well, it's going to be 15%. not 47% or 10% if they held that business for more than a year before they flipped it off and sold it. So from these changes that have occurred, superanuation funds now have the best taxation edge over all other sectors across the individual across the regular investor across companies across uh even even businesses. They have businesses being sold. They have the best taxation edge and that's that's your super funds.

[00:03:01]Super funds have won on this budget and they have won by a stinking mile. So, as an individual or an investor, if you had capital to spend on stocks, well, your best financial avenue now is to move that capital across to a super fund cuz you're going to get the best outcomes for it financially. Uh, as opposed to doing it yourself, you're going to have higher taxation rates than sending the money across to a super fund. So there's now heavy financial incentive to send your money across to a super fund instead of managing your own portfolio. But this locks your capital away until you're 60. You can't touch that money till you're 60 cuz it's with the super fund. Whereas prior to that, if you had your money and you manage your own portfolio or you'll be able to withdraw it, shift around, do what you wish with it. But now it's locked away because the financial incentive is sent it to the $4.5 trillion super fund industry. How good's that guys? Is something starting to click here? Are we seeing wealth from say the poor moving into the the coffers into the accounts of the very very rich. Now when it comes across to negative gearing, so super funds never had negative gearing in the past. It's not something they had to play with. But your uh your investor, okay, your guy who's had a job, girl who's had a job, family who's had a job, they've got their house done and they've gone into investment property for their retirement. They had negative gearing.

[00:04:29]Now that negative gearing is gone for everything except for new builds. So all new purchases, not going to get negative gearing on existing properties, just new builds.

[00:04:37]That's given that's taken the edge away from the individuals. That's taken the edge away from the investors. And now they're on the same playing field as the $4.5 trillion super fund industry. So the existing properties to go up.

[00:04:53]There's no longer negative gearing or anything like that for the investors to offset against. No. Uh they're on the same playing field as the super fund.

[00:05:01]Now the investors have lost their edge where it comes to no negative gearing on existing properties when they go for sale. Well, the super funds are going to say, "Well, we're on the same same playing field here. uh no negative gearing for them, no negative gearing for us. So, let's have a swing at it now. Uh then prices are now competitive for us to enter. And you'll start seeing super funds spinning up things called REITs or real estate investment trusts.

[00:05:25]And these real estate investment trusts, they're going to start to buy up existing property in Australia. It's going to move across to institutional investors, institutional people managing existing properties. institutional investors buying up entire suburbs as they go for sale, let alone when they start to deploy money across to buying entire new suburbs. You start to see the super funds buying out entire new developments. Entire new developments institutionally owned and that's yeah so that's not you owning it. It's not the investor owning it. It's the super funds. They're coming for the property guys. They're coming for ownership. Now, I did say REIT, real estate investment trust. And you may have noticed in the budget, they're coming for trusts.

[00:06:07]They're taxing discretionary trusts.

[00:06:09]Now, REITs, real estate investment trusts, which are primarily instruments that super funds use, uh, they're not impacted. None of these changes uh, include REITs. They're excluded from changes. So, the real super funds buying all the properties up excluded from any of these trust changes. So super funds have lobbied hard and they're exempt from all the changes. They've kept all their existing rules, all their all the play lines that the $4.5 trillion super industry has had in their pocket.

[00:06:40]They've kept it all. Meanwhile, individuals are worse off. They was trying to invest, just get ahead, maybe retire a little early, maybe put that money towards the deposit for their first home. They're worse off now that the capital gains tax offsets have been removed. uh even though there's you know there's the real gains or the uh the real real inflation only thing when it comes to compounding guys you start looking compounding down the track it's a much worse deal okay so we're worse off uh the investor is worse off uh the businesses they're worse off corporations even they didn't really win too much here either it's the super funds the super funds one hang on a second I'm just going to have a quick look at the ducks I got some ducks in the background look at them they got a little platform there. And there's a bin chicken. King bin chicken.

[00:07:27]Ibis duck. Yeah.

[00:07:30]Like to try to get outside occasionally, guys. I spend a lot of time reading through all this politics stuff, all this financial stuff. Get caught up in all the drama watching. You know what's going on. It's good to just touch grass. Get out. Yeah, guys. If you're at home watching, getting hooked in all this stuff going on the world. Take a walk. Take a walk every now and then. Touch some grass.

[00:07:49]There is a real world out there. Even though many of us feel it's been, you know, taken away from us, but we can still get out there now while it's lasting. Who knows what it's going to look like in 10 years from now. But back to point, we've all lost out. The super funds, the super sector that now has anywhere from a 10 to 15% taxation rate on capital gains. So, it's the lowest and everyone else's has gone up significantly. Australia is now the second highest in the world except for the super funds. uh super funds are still super low compared to many other countries in the world. So super wins, everyone else loses. And if you think back a few years ago, super funds, they had another win. The contribution rate from employees was 9% of their earnings into a super fund. And then they've lobbyed, petitioned, and you know, got overline through the government and now 12% increased by.5% each year. 12% is now going across from our earnings into the coffers of the super funds to manage. So wealth transfer from income earned across to superanuation funds.

[00:08:53]The super funds want more capital coming in and they're getting 12% of the working class right now coming into their coffers. They're coming from the investment classes. They're coming from any uh by making it harder or more competitive and financially advantageous to just put the money with the super funds. Your extra money into the super funds. That's what they've done here.

[00:09:12]The super funds have won by the leverage being removed from everyone else from the individuals. the investors, the businesses, the corporations, they've all lost their leverage here. The super funds have kept their leverage and their leverage is now in a significantly better position. The super funds have won and the super funds are going to get more and more capital coming in. The 12% of the working class coming in or all gains across and now it's financially incentivized for extra capital to come across to the super funds. And we got hoodwinkedked. We got hoodwinkedked. We got had government saying this is to make housing more affordable. This is for wealth wealth equality and to deal with wealth inequality. We we got all this all this stuff through. But all has happened is everyone is now being incentivized across to funneling money across to the super funds. The richest the richest in Australia, the $4.5 trillion industry, the sector 4.5 trillion now has more money coming into it. now is incentivized for the working class and everyone else to send more money across into it. In this case, what's happened on this budget is the rich have gotten richer and the poor, we've been hoodwinkedked. We've had the warp pulled over our eyes and we're slowly starting to put together the picture of what's just happened to us. Imagine what this is going to look like in 10 to 20 years down the track when there's even more capital coming in when they're buying up all the housing. When these REITs, real estate investment trusts are buying up everyone's housing. What's it going to look like 20 years in the future? Will your kids ever have a chance of buying a home? It's hard enough right now for the current generations, but kids in the future, well, they're going to be competing against institutional buyers from super funds, and they're not going to be selling these properties on the market. and they're going to be buying up all the new developments. They're going to be buying all the existing so they can rent it out and you'll have an entire generation of renters. That's where we're heading. The rich have gotten richer. The poor have been blinded or pulled over the rise. And we're slowly putting together the picture. What are your thoughts? Let me know down below in the comments. And I'll see you in the next one.