BUDGET 2026: What Labor’s Plan Means For Shares, Property And Investors…And How You’re Next

Added: 2026-05-14

[00:00:00]Can you rule out any changes to negative gearing and capital gains tax?

[00:00:03]>> Yes. How hard is it for the 50th time?

[00:00:06]>> I want you to say tonight categorically negative gearing is off the table.

[00:00:11]>> Yeah, it's off the table. Will you guarantee that you won't touch negative gearing in capital gains tax concessions? Well, we have no plans to touch or change negative gearing >> right now. Is negative gearing are you going to touch it or not? Is it changing?

[00:00:25]>> No, we we have no plans to change negative gearing. the reasoning here in the election.

[00:00:32]>> No.

[00:00:33]>> Uh, so you're completely ruled out.

[00:00:35]>> I think that was a pretty clear answer.

[00:00:37]>> I rule out I rule out I I have responded to that lots of times.

[00:00:41]>> So, do you rule out changes to negative gearing if elected? Yes or no?

[00:00:44]>> I told people we wouldn't make changes.

[00:00:46]The proof's in the pudding. Andrew, if we were going to make changes, then why why haven't we? So people can see what we've done.

[00:00:59]Well, if it isn't the three amigos back a little bit earlier than intended. Mark Depola, Eric Machado, and myself back from hiatus because we have been called to attention with the clown show that is unfolding in Australia as we speak. But before we jump into it, Mark, how are you, buddy?

[00:01:22]>> It's bittersweet, brother. It is bittersweet. I am so delighted and excited to be jumping back on with you two, but I am devastated at the reason that we're jumping back on. Uh yeah, it's not great.

[00:01:36]>> Stick around, guys, because Mark has an incredible story of how this particular rule change, I don't know why I'm smiling. I should be crying, but but this particular rule change is going to hit him very hard. He's had a massive massive uh week in the markets and uh he'll share the story in a minute. Eric, how are you, buddy? What's going on, >> man? Honestly, I was like, you know what? We took a six week hiatus. We've organized our content. We've had multiple meetings. We've sat there organizing the cadence, right? The introduction, how we were going to come back on Friday with this other pod and introduce the sequence of new pods. And then this happened. And literally an hour ago, we were messaging messaging each other going, "Guys, we need to do a pod on this. When can we get on?" And literally 40 minutes later, here we are talking about what has happened last night in this budget. Meanwhile, Adam is overseas sitting back going, "Ah, it's not affecting me." And Mark and I are going, you know what? We've rolled the dice going, "This can't happen. It's all good. Australia is still all right." And here we are going, "What?"

[00:02:41]>> We we we knew it was going to happen.

[00:02:43]But like, look, look at Adam. He looks golden, sun-kissed. I look like like I've seen a ghost. And the ghost that I'd seen is last night's budget.

[00:02:53]>> I think that one of the hardest parts of this guys is the, you know, the changing of the goalposts, you know, like and it's such a disincentive to people who are creators in our economy because people see the rules, they make decisions based on the rules, and then when they try to unwind these rules, the fallout is massive. And I think sadly I'm going to put on the record up front.

[00:03:19]I don't believe in either of the major parties. In fact, I am to the point where I don't believe in politics anymore. I have lost faith in the system. I think left and right is an illusion that they sell to us normal people that politicians have actual some control. I think the people who run the planet are sitting at a layer above politics. So before you say, "Oh, you're right. I don't give a [ __ ] to be honest with you because I don't believe either of the major parties are better than the other. But this particular Labor government is a clown show. Matt, you're going to say >> I was you're 100% right. Right. Like it I I I feel like every party gets captured by the people behind the the black curtains eventually and that there's some higher power running the show. And you and we could get into a a different discussion that would take all day about why what the the motives of that are. But I I I'm not blaming Labor for this budget. I'm blaming Liberal.

[00:04:13]Because if Liberal wasn't such a clown show, if Liberal wasn't such an implosion, if Liberal wasn't such a weak party, then Labor wouldn't be able to get away with such sweeping changes and reform. This is why two strong major parties is so important because it keeps the other party accountable. If the Liberals were strong and they were running neck andneck with Labor, do you think Labor would be so brazen to do and implement the changes that they've done?

[00:04:41]No chance. Right. And this and so I blame I blame Liberal. This is this is what I've come to expect from a Labor government. Right.

[00:04:49]>> Yeah.

[00:04:50]>> They they've been wanting to do this kind of thing for a long time. Uh but that's the problem when you have another party, Liberal Party, who was just trying to be like Labor over the last four years, >> right? It's a mix.

[00:05:02]>> It goes to show you the desperation that they are in and what they've created to actually sit in front of camera over the years and deny that no one in the Labor Party will touch negative gearing. No one will touch capital gains tax in a country where most wealth is held within real estate.

[00:05:25]>> I want you to say tonight categorically negative gearing is off the table.

[00:05:30]>> Yeah, it's off the table. Will you guarantee that you won't touch negative gearing in capital gains tax concessions?

[00:05:37]>> Well, we have no plans to touch or change negative gearing >> right now. Is negative gearing are you going to touch it or not? Is it changing? No, we we have no plans changeing >> to then basically lie right in front of camera and do the total opposite.

[00:05:55]>> Does change translate to lie in government language?

[00:06:01]>> We've changed our position about your position.

[00:06:05]>> It goes to show you the shambles they must be in and how desperate they are.

[00:06:10]And I was talking to Mark this morning and one word came to mind which was disheartening. You know this this is a tax on the aspirational in my opinion.

[00:06:22]What is the incentive? What is the incentive now? Like the discussions Mark and I have had this morning were all about where are we going? What are we doing? And how are we going to do it?

[00:06:33]And who do we need to speak to? Right?

[00:06:36]It wasn't about what businesses do we want to start here. It wasn't about us talking about our next property purchase in Australia. Like there is there is no incentive.

[00:06:46]>> Yeah. Can can I show you can I show you can I because you know before before people you know say that this is good because it gives people an opportunity to buy property and things like that.

[00:06:56]You know look at what Pauline Anson said. I think she summed it up. I think she summed it up beautifully. I posted it on my on my stories here. Uh where is it? She said, "If this is all about housing, if this is all about housing for young people, then why are all the other assets being included?" Right? Why are all the other assets being included, which is um sorry guys, uh commercial property, shares, industrial property?

[00:07:21]What's that got to do with housing?

[00:07:22]Right? That's the disheartening part about about what we're what we've seen is that they've gone after everything.

[00:07:31]So basically half of the unemployable um for two years half of the unemployable stick or channel has been promoting how to invest for your freedom. My entire YouTube channel money markets and mayhem is all about how the world is has become a place where it's no longer you can't you can't get ahead working because the debasement is so great. They're putting money into the system. They're running up debt trillion dollars of debt now for the for the Australian economy. at $65,000 per person. So as you're born, you're already $65,000 in debt that the country has to pay back. And so the only way to get ahead and to circumvent that or to to beat that is to invest for your freedom. And now they're basically trying to cut that or make that much harder. So it feels like they're saying, uh, we want everybody to basically have a house and we'll talk about that because majority of people still won't go out there and buy a house. I think the the housing rates are declining. And they're basically saying, "We want you to have a house and a job, but that's it. We don't want you to have any more than that."

[00:08:32]>> Yeah. I mean, it's it's so disheartening because I think the average Aussie out there is thinking, "Why don't you do some in-house cuts? Why don't you make us not the most governed country in the world with the highest level of public servants in the world where 51% of the voting base of Australia uh relies on a government handout or a government job as their principal source of income, which is a fact in Australian life today. 52% of Australia. Why don't you do some in-house cleaning? And what's alarming to me is I see all over socials today, you know, like people like Jay Wright, right? He runs a big ecom sellers community, right? So this is um Jay's one of a young Australian success story. He's listed in the BRW Rich List with $100 million net worth and he mentors young Australian entrepreneurs that aspire to be the next Simon Beard, right? Like and have a big exit and you know, and build something in Australia.

[00:09:24]and he's put out a reel this morning.

[00:09:26]He's got a massive community, thousands of clients saying everyone in my community is like, "Where do we go?"

[00:09:32]They're all deciding, "Where do we go?

[00:09:35]Is Australia a club that we want to do our ecom business?" So, what happens when the next Adelacians, the next Canvas move to New Zealand where there's no capital gains tax? And he's saying a lot of them are going, "We're moving to New Zealand. We're out." because of these new sutilas there's just no incentive because they go without people who start businesses go without salaries they go and pay everybody else's salaries for first sometimes for years to you know creating economic value and jobs and then you're taking away the incentive at the end for the few that break through and what they do is they grab a Simon Beard or they grab these very successful Australians that are in the minority the ones that have the big exit um he mentioned another one I just saw this morning an Aussie company that just exited for 1.2 2 billion and they gave a large the amount average employee received $450,000 each as a bonus in that exit. Those guys are just going to go overseas and we're you only got to look to New York. Look at what Mandami's done by trying to tax the rich or the aspiring. They just leave like when are they going to learn this?

[00:10:36]>> Even Ken Griffin's picked up now because he was attacked personally. He's going to he's going to go to to Florida. It's like >> he took 6,000 jobs with him when he left because Menami made a video standing in front of his penthouse saying, "Ken Griffin lives here. He's rich. He's bad." And Ken Griffin just went, "I'm pulling out of New York. 6,000 New York jobs gone. Billions of dollars of infrastructure projects just left because you decide to be an idiot." And this is a guy that was paying heaps of tax in New York. He just didn't live in that New York apartment, but he was paying a fortune and creating thousands of jobs.

[00:11:10]>> Well, well, people don't Yeah.

[00:11:12]>> What people don't see as well, right, is like I Bob Cater posted something um earlier today and I reposted it and it said that over the four years of labor, public service has increased by 41,000 people to 213,000 employees.

[00:11:32]42 billion. That's an increase of 20%.

[00:11:36]Right, of of public servants that what weren't there before, right? NDIS, right? The increase in budget in the NDIS over all these years. Now they're trying to >> he mentioned that over four years, right? So >> somebody's got to serve the millions of immigrants they're bringing in.

[00:11:56]>> Well, well, what this is the thing, right? But this is what people aren't seeing. All we're seeing is you know the tax reforms and all these things but we're not seeing is where the actual money is being spent. So basically what it is is they're in desperation going where can we actually get the tax from so we can actually uh so we can compensate for the overcompensation of funds that we have now spent right like NDIS. I was talking to someone that we know quite well and know so do you guys yesterday and she's got a big NDIS business and she has a separate business as well and she's starting to remove herself more and more from the NDIS business cuz she's like she sees how how much fat there is in it and how scammy there is and how many different types of people that are actually in it. She's like it makes me feel sick like like and this is where a lot of this type of money is going from. But the like the the reality is this, right? They they they they make it sound like this is for the firsttime home buyers. This is for the lowincome earners. But what we got to realize is, you know, the the the wealthy will adapt.

[00:13:06]This is will impact massively the middle class and the lower class. So what they do is they incentivize like in this budget they've just changed you know from you know $16,000 to 42,000 or whatever that amount is you know instead of being charged 16% tax you can now get charged 15% tax 1% which is like $240 right and then you're going to have people going yes and a $1,000 incent issue is they're giving you that $1,200 back and they're taking $5,000 over here right in front of your eyes but in disguise you know like who I feel for right who I really feel for to be honor right and I take my hats off to people like doctors okay you're on three 400 grand a year you're paying the highest tax in the game all the incentive those people have was was to buy and neg negatively gear property to offset their tax. That's gone. Instantly gone, right?

[00:14:18]Unless they buy brand new. But the reality is this, guys. We can't even build enough homes right now.

[00:14:26]So, they're incentivizing something that they can't even bring to the market regardless.

[00:14:33]What? How are they going to do it if they're incentivizing something that can't be done anyways because we don't have the people to build them?

[00:14:41]They're just grossly incompetent, Eric.

[00:14:43]It's like when they did the 5 deposit scheme and tried to tell the the market it won't affect property prices that much. I think their modeling showed like over eight years they expected to increase property prices by 2%. And property prices, this is to help the little guy, you know, ignore hex debt when you're assessing loans and drop deposits to 5%. And it's going to help more people get into the market. And of course, property prices just spiked immediately. They are incompetent idiots that are like just it's so easy to see and I could see this. I know where they're going to go for the money.

[00:15:16]They're going to go for real estate because the Australian real estate market is a Ponzi propped up by the government for the banks and that it's like it's crystal clear to me and you can't move Australian property. So just keep the property you know thing going.

[00:15:30]Keep people coming in. Keep people buying. Keep their price because if they screw the pooch they are in serious trouble. Um, and and NDIS is the most difficult thing to to change because who's going to run on a P platform going, we're gonna we're gonna cut NDIS and you're going to see the guys on the other side of the aisle going, you know, Eric's running for office and he wants little Lucy here in a wheelchair, you know, to to not have that wheelchair.

[00:15:54]He's never going to win running on that platform because it's too easy to shoot it down. And the Gillard government, the way they brought that in, it's almost impossible to change. It's it's going to be it's going to be very difficult. So, you know, a couple of a couple of things out there for if there's people out there that are listening and who have been listening who don't own their own home or don't own any investments and they are still, you know, wanting to get ahead and and and wondering, you know, that they're the too long didn't read or the too long didn't watch the budget.

[00:16:22]The message is go out there and and beg, borrow, and steal to go buy a new home in in a in a brand new suburb. go buy your own brand new home in a brand new suburb because though I can I can tell you what's going to happen because I've worked in the industry. I've sold over 2,000 blocks in in the Greenfields estates. And this is going to be a massive boom to the new housing estates, right, in in the outer ring suburbs.

[00:16:45]Just like when the first home buyers grant came out in 2007208, when it came out again in 2020, you had the biggest land b land appreciation boom. Like property land prices went up. They basically doubled in 3 to four years. So that's what's going to happen in these new estates. Go out there and buy now, right? beg borrow and steal to get out there and buy and to have your own home because this is going to this is going to hurt and not help inflation moving forward. All right, we're going to become less productive as a nation because more and more reliance is going to be on government and they're notoriously unproductive, right? They're unproductive. And anyone anyone who's got a property now that decides not to sell between now and 2027 to to realize gains is just going to keep those properties afterwards. And the rents are going to go up on those properties because you are going to see >> you are going to see a housing you will still see a housing shortage because we can't deliver the supply that we need and they're not going to cut immigration to the level that they should cut immigration to in order to avoid that shortage. So you're going to see rents go up. So two things for those who don't have a property and it's now 66% home ownership and it keeps dropping. You are going to be royally screwed if you don't do whatever you can to get into the property market now and get that first property because your rents will be going up. This there there's no way that this policy doesn't lead to increased rents in my opinion and to increase house prices in those outer ring suburbs. You'll have an overhang in the established areas for sure. Um and and the thing the thing that I'm most disappointed about as an entrepreneur and as an investor is that it destroys the ability to invest for your freedom uh effectively here either through property or through superanuation or through investing in companies right like the last we didn't in 2008 in 2000 when we had an opportunity to do a sovereign wealth fund to tax our miners put a little bit in the kitty like Norway and like Singapore did we didn't do a sovereign wealth fund instead we blew blew up the superanuation uh bubble. We blew up the superanuations, right? Because everyone had to do the 9% uh contribution and we blew up our property market through first home buyers grants and through investment laws like you're seeing because it's incentivized. Now they're unwinding that, right? They're unwinding what was the biggest way kind of escape the system, right? And so and so, you know, only last Friday you saw I uh they were a Bitcoin miner. Now they're they're they're a mining company that provides power for data centers. They traded on the US stock exchange. They traded in one day the same volume that the whole Australian stock exchange traded in that same day. And that country was told you are not welcome to list on our exchange.

[00:19:30]So as an entrepreneur and as someone as someone who believes that the wave to prosperity the the the tide that rises all boats in a society is innovation and builders more builders more innovators you're killing those golden gooes because they are going to seek alter.

[00:19:47]Why would you start a business here?

[00:19:49]>> No first start a business that's when you most need the trust 15% tax bracket because it's so hard to start business.

[00:19:59]Iron is an Australian founded company, Aussie Brothers for those who don't know, and they pivoted from Bitcoin mining to AI data centers and just went blew the doors off, you know. But I meet them every day, boys. I'm telling you now. I ran a charity event here at Finn's Beach Club last night, a room full of entrepreneurs. Nearly 100% of them are Australian or British. And we all get together and they all say the same thing. Oh my god. I I look back now and I I can I'm never going back. I am never going back. And they're all telling their friends the same thing once they're out of the system. They're like, I feel like I've been in an abusive relationship with a tax department. And now it's just gotten worse and worse and worse. And and and and they're all just going there's other ways to make money than Australian real estate in the world. And they're all learning those other ways. And uh you know, I had a cigar here just at my villa the other night. There was 12 guys. Half of them are Australians and they're like, "Fuck, we're so glad we're out. We're never going back. We're so happy, healthy." And these are not guys that have been out for two minutes.

[00:21:02]These are guys have been out for three, four years. And they're just like just joyful.

[00:21:08]Adam, I I'll be honest. You guys all anyone that follows us, you guys know me better than anyone. I've always been very pro property, but not in a million years that I think this would happen, right? that they would actually touch CGT and negative gearing and they have and it's just like like Mark said, they've got so much control. They can do so many other things when and want when they uh uh um whenever they want. Right now, I want to explain because there's some people that might that will be listening to this that don't know some of the changes or don't know how negative gearing actually works. And I was explaining to someone that was at my house doing some work this morning. I'm like, "Did you watch the budget?" And he's a business owner. He's like, "No."

[00:21:56]He's like, "I'll just wait to listen to your guys pod, right?" And this is before we even knew we were doing a pod.

[00:22:02]So, so negative gearing for those of you guys that don't know what it is, right?

[00:22:08]So, if you buy a property, right, and you collect $50,000 in rent, but the expenses on that property, including interest and rates and the rest of it is $80,000, then there's a loss of 30 grand, right?

[00:22:24]Where you could take that 30 grand and if you have a high income, it doesn't matter what income you have, that 30 grand can then come off your taxable income moving forward. So if you've earned 200 grand as an example and you got to pay tax on the 200 that 30 comes off the 200 and you got to pay tax on the 170. So basically what they're saying now moving forward right for from July 1st 2027 is anyone that buys existing property secondhand property zero negative gearing. So if you're buying that property right you're not getting that tax benefit anymore. You're only getting it if you buy new property. So what they're doing is pushing you to buy new property, new apartments, new housing.

[00:23:11]If you've owned property, for instance, Mark owns property here property here.

[00:23:18]>> Eric, investor is buying new property.

[00:23:20]You've got correct gains. You still have access to capital gains and negative gearing.

[00:23:24]>> Well, well, this is so this is negative gearing, right? Doesn't matter, right?

[00:23:27]So if you have existing property that you have now, you're grandfathered in the negative gearing. So you're grandfathered in, you have negative gear moving forward, but after right when they implement this and you go and buy another secondhand house in Melbourne like the one that you own now, zero negative gearing.

[00:23:49]>> What if what if you buy a brand new investment? You still get >> you get negative gearing. You get the concessions >> and you get the CGT concessions.

[00:23:57]>> It's gonna blow up the housing estates.

[00:23:58]The housing estates are gonna land.

[00:24:00]>> Sorry. The CGT Yeah, the CGT changes to indexation model. So, we'll we'll talk CGT in a sec, but so for negative gearing, so like I said before, it doesn't really affect lower income earners, right? It affects people that have multiple properties. So if you're in the market and you want to buy multiple properties now, right, not all there's not many properties in Australia that are positively geared, right?

[00:24:29]They're very unique if they are they're either in rural areas or you got to manufacture that positively geared and have rooming housing, you know, maybe, you know, disabled NDIS style housing, but not your normal housing that you just go buy in a suburb and it's a bit negatively geared and you can go buy one and you can go buy two and you can go buy three. Now, I've never been big on the negatively geared strategy anyways because you're capped at some point. But again, for the high income earners, doctors, lawyers, any of these corp corporates, you know, you're on 300 grand a year or you're a CEO or any of these types of people that were using this as a very good tax incentive to them, that's gone unless they buy new. So that that just to give you guys an example on the negative gearing and what it means and how it works. That's kind of it in in layman's terms. Now the CGT discount is is a whole other thing, right? And I'm happy to go into that now if you guys want, but we we can >> there will be people listening to this, Eric, with that explanation going, "Well, hang on a second. Doesn't that mean there's going to be more used homes in the market for people to buy that are not being snapped up by investors? How is that a bad thing?

[00:25:47]>> Correct. So, what's going to happen then, right, is what is the incentive for Mark and Eric who still here?

[00:25:53]Because I know Adam has zero interest in Australian property. the incentive to go buy a secondhand house as an investor when you can't negatively gear it if it's negatively geared because most most places are negatively geared because the rents don't cover the expenses. What it's going to do, it's going to incentivize those people to to come into the market and buy them as owner occupied stock, right? which in my opinion will shrink the amount of rentals available for the people that need to rent, which means it's going to put pressure, heavy pressure on rental prices. Now, the modeling they've come out with, they said that their modeling shows an increase of about $2 a week in rent.

[00:26:42]>> My [ __ ] similar type of modeling like you said before with the 5% deposit scheme. There's going to be a massive amount of pressure on rentals because there's going to be less incentive for people to buy the existing properties.

[00:26:55]So, in my opinion, there's going to be a lull in the market for a period of time, right? And people are incentivized now to keep the properties, right? Because it's not like if you have a negatively geared property right now that's grandfathered in, why are you going to sell it when either you can only buy new to get it or if you buy secondhand you're not going to get it.

[00:27:18]So what's going to happen is again my opinion people will hold the people that can will hold their properties for longer because they've got this incentive of keeping it because they had they're grandfathered in. So that's worth something to them. Now, >> Eric, if I >> if I sell my if I sell my property between now and 2027 when it comes in, so sorry. If I own a property now, um it doesn't matter when I sell it. I've got the capital I get the capital gains discount because I've owned it before the laws come in. This is only for people.

[00:27:54]>> So, capital gains is separate. So, I'll explain capital gains, but Adam, you were going to say something.

[00:27:59]>> Yeah. Believe in capital gains aside, just following that argument though, Eric, I don't believe most Aussie property investors that are building portfolios, the smart ones are never going to sell. They're going to try and build a portfolio and they're going to keep debt on the on the on the on the um properties and they're going to let the tenants pay off the mortgage and they're just going to keep owning them. They This is how Australians create wealth.

[00:28:21]They don't I don't think there's an added incentive to keep it because they can't do it anymore. I just think they were going to keep it anyway.

[00:28:27]>> Well, yeah. But what's going to happen is the that secondhand stock when when you want to sell your principal place of residence, the mostly the only people that are going to buy it now are going to be people who need a home to live in as opposed to an investor coming along and adding it to their portfolio because that that investor market is probably more incentivized to go and get new stock. But then from an investor point of view, they're in a catch 22 because we all know it's better to buy a house and land. And so that what Mark's saying is they're all going to go if they want house and land as opposed to a unit and they're a savvy investor. They're going to have to go to Greenfield's estates because it's going to be new, no new stock, you know, in a 10K ring from the city. So, but all those homes that are secondhand that are owned either by an investor that wants to sell down their portfolio, which is quite uncommon, but a principal place of residence, now there's going to be less people bidding for those PPR. So, how is that bad for, if we still man this, how is this bad for home prices if there's less people wanting to buy used stock in the market?

[00:29:30]>> The the used stock, I think, will have an impact in a short period of time.

[00:29:35]>> You think it would be softer?

[00:29:36]>> I I think it'll be softer on the second half, >> but but isn't that good? Isn't that good for people who want to buy a home? I guess maybe the average person that first time buyer couldn't buy it anyway, right? Because the first time buyers can't afford anything. But when we talk softer, let's talk softer. So if that if that property is $1.2 million, right, and it's softer and it goes to it ain't going to go to, in my opinion, it's not going to drop 20 or 30%.

[00:30:01]>> Right.

[00:30:01]>> Yeah. But it's also probably not going to climb and continue to go through the roof as it is.

[00:30:05]>> It's going to put the brakes on, isn't it?

[00:30:07]>> It should put the brakes on a little bit for existing stock. But then I think to myself, is >> how does exit how does new stock and the demand for new stock keep going? because that's where a lot of the eyeballs are going to go. How can that increase but existing stocks stay here?

[00:30:24]>> No, it won't. I don't I don't I don't think I don't think it I don't think there's going to be a massive crash in property prices even in established areas because what what will happen is everyone will start buying the Greenfields areas and then the arbitrage will close between Greenfields and inner ring suburbs. The arbitrage will close and people will say, "Well, it now it now makes no sense to be buying in the Greenfield area. There's some there's some discounts in the established areas and it'll also it'll also promote new development in the established areas as well, right? People may let me let me let me ask both of you guys as high income earners, right? You you you go, "Hey, sweetie, let's go and buy another property. We've got a deposit enough for a deposit to buy another property or there's equity in somewhere else, right?

[00:31:06]we want to go buy another property because we're property people and you're faced with buying something in a green fields project with with capital gains tax sorry with um with negative gearing available or you can buy a [ __ ] that's 5ks from the city of Brisbane but there's no >> what what would you buy like would you you know what we don't get the tax write off but we get the capital gains potentially growth of being in the inner ring at Brisbane. What would you do?

[00:31:38]>> You're not buying in a ring. You're not buying in the inner ring as an investment unless you can redevelop it.

[00:31:43]>> Correct. That's that that's what I would do. So, because they're incentivizing new builds. So what like the people that are going to win, right, are the people that are holding on to land that you could build a duplex on or you could build a townhouse on or you could build a six-pack of units or or apartments because they're incentivizing the negative gearing on that new stock. So renovations don't count. If you knock down and build a new house, doesn't count. There's still a house. You're not adding value, right? So I think what's going to happen is for the people that have multiple properties that already negatively gear that have been up in went up in value and they're sitting on equity, their best option if they have the service ability is to go and refinance the [ __ ] out of that property, right? Rip that out, go again because all that is offset against tax because you've been grandfathered in. So their incentive is to just keep ripping out, right? and get as much negative gearing on those properties as possible to move forward. But what we're not thinking of here is this.

[00:32:51]Oh, sorry. I'm going into CGT now, but I think what will happen?

[00:32:57]>> Go ahead.

[00:32:58]>> No, I mean I I just cast my mind to a recent reel I saw at an auction in somewhere in Sydney. It was a I think it was the outer suburbs of Sydney or Melbourne and somebody filmed it and there was probably 80 people there and I would say 80 of them were Indian. All of them like there was not one white you know I'm going to roast in the comments for this but white Australian looking just for the I'm using bad words just trying to get the point across >> anymore.

[00:33:30]I've tried to use words to get the point across that you've got new, let's call them new Australians, Indians that have come in. They understand that getting Australian real estate is how you get ahead. So, they're out there and and that's who's buying out there. And I talk to property marketers and they say if not for Indians, we wouldn't be selling nearly as much as we are. And I mean, I'm I'm sure you guys most of their market is Indians. So these are hardworking people that that are going to be starting small businesses and doing whatever they're doing and they're going to get together and they're going to keep buying these green fields estates. So and they're going to use the same playbook. So I think Mark you you're right. you're going to see those people just replicate the playbook and drive the price of these green fields estates along with it as they're doing more >> all in all in all right like it's it's not my my my I mean I don't think it's terrible what they're doing with relation to property and I don't think it's going to have terrible consequences to property prices it's going to redirect capital it's going to redirect capital from middle ring suburbs out to the uh Greenfield suburbs. As we've been saying, the arbitrage will then close and then it'll become and then and then people will make I could I could I've seen the cycle play out over 20 years.

[00:34:46]People make money, they make capital gains from their Greenfield suburbs and then what they do is they sell them and then they they they trade up and they go into the middle ring suburbs because they're trading up with that equity. So, so it's not I don't think it's catastrophic for Australian property.

[00:35:02]The the big thing that I would say is that I do think it will be worse for renters because there'll be less turnover, right? And there'll be less turnover and if there's less turnover and less supply, rents are going to go up. And I I do think that's going to happen. So if you're listening and you don't properly, you have to go and get one. You have to, right? But where where I really have issue with it is that they've adopt these same things have been implemented on shares, crypto, commercial property, industrial property, etc. It's blanket across all investment. Those investments are more entrepreneurial and th and doing it to those investments doesn't help people.

[00:35:41]>> CGT you're talking CGT now though, right? But that's CGT rather.

[00:35:45]>> Yeah. So no, so so commercial not on commercial properties and not on businesses, right? So there's going to be more more demand for commercial properties.

[00:35:56]>> So it's not on commercial property.

[00:35:57]>> Yeah. So it's going >> well it is on it is it is on businesses with relation to trusts, right? They've closed the 15% loophole. Now there's So what they've done is they've raised taxes on businesses. a start a business that starts out whole >> operates in adjust >> gets the 15% tax bracket if they can distribute to people who are on high incomes.

[00:36:16]>> Yeah.

[00:36:16]>> Right.

[00:36:17]>> Let's flip over to let's flip over to that Mark. Like we've we've talked about negative gearing and you know I think it's an interesting case Eric, but I don't think for the average Aussie I don't think they have a lot of sympathy for high income earners that have been using um negative hearing. Yeah, I agree. They >> they're not they're not rich by the way.

[00:36:36]You know these doctors. When I got my skin checked recently in Australia, this guy's got a practice. He said, "Dude, I am struggling just to pay my bills and he's got a successful skin care cancer clinic." And he said, "By the time I pay for all the staff, the insurance, the machines, I got two kids." He goes, "I'm just barely making it through." He says, "I don't know how the average person's making it through and I'm a credentialed doctor, you know, and so it's going to be interesting that one. But I think the tax incentive on the other side, if you look at this CGT, sorry, the um >> uh yeah, the CGT changes, >> this affects everyone who's trying to get ahead because it's across all assets and it's a direct tax on gains.

[00:37:14]>> So not not on business, >> not on business, >> right? What do you mean by business? So if you start a business and all of a sudden that business is worth >> no if no if that business is worth four million bucks and you sell a business right you get the 50% CGT still this is just on yes not what Jay was saying in his community then is wrong because he was saying that all these e-com sellers want to leave and go to New Zealand so that when they sell they don't get clipped >> well there's zero New Zealand is zero capital gain >> I know it's New Zealand zero But in Australia >> is a 50%. You still get the 50% on business, right? So it's not business.

[00:38:00]>> They did business. Yeah. If they did business.

[00:38:02]>> Are you sure?

[00:38:04]>> Yeah.

[00:38:04]>> It says here it says here yes. CGT changes do appear to hit business assets too.

[00:38:12]>> From what I've seen from what I've read is not business.

[00:38:15]>> Hang on.

[00:38:16]>> Small small business DGT concessions are beautiful guys. property and shares which would be you know I'm assuming Bitcoin the rest of so so to be very very clear they're not disincentivizing people to start businesses right so in my opinion what's going to happen is I talked to a friend of mine today so ex business uh ex- business partner we sold the business he's now investing in some properties he had one going to contract he's like I'm not even buy that one anymore because I'm just going to sit back and What's the incentive to buy that? My incentive now I'm better off going and investing in business or backing someone else in business because I'm getting the 50% CGT if we sell at the end. Right? So to be clear, not on business, but with the CGT, right, with the CGT exemption, and again, for those of you guys that don't know what you know, capital gains taxes or how it works, right? Now, in Australia in property, if you buy a property for a million dollars, right, and that property went up by a million dollars, that's a $1 million gain, and you've held it for longer than 12 months, you have a 50% CGT exemption, which means that million dollar gets cut in half, right? So, you keep 500 grand, you pay no tax on that, and then you pay tax on the 500 grand.

[00:39:43]Now for existing owners, right? So if you've owned a property, so we'll use Mark as an example, right? I'm not saying this is your exact position. So if Mark owned a property for eight years and it's went up by a million dollars, that's grandfathered in, but he still owns that property for another two years, right?

[00:40:08]And if that property goes up by another 100 grand, that 100 grand is now going to be taxed in what they're calling indexation model. So you're not getting taxed on the whole. So you're getting grandfathered in, but from July 1st, 2027, you're now getting taxed from the gain from that time. So you've gained >> So how do they how do they establish that? You have to go back in time and create a valuation of >> now you so so what people aren't thinking about is this what you said Adam on a chat the other day you said I've got zero compliance in my life now I don't have to keep a receipt I don't have to do basses so what people aren't thinking of is now the compliance cost that is involved now so what they're saying is the ATR are going to create a calculation table that then gets sent to the accountants so they can work out, you know, the calculation. Now, I'm going to give you guys a little bit of an example so you can see, right, the difference, right, on the tax that you would pay. Now, this isn't going to be for the people that don't own assets and say, "I don't give a [ __ ] right? This is too bad. You know, you guys make too much money anyways." You know, and and and those are usually the people that that are voting for labor, right? So this is for people to get an understanding. That's the reality >> for that era.

[00:41:36]>> I know. I know. I know. But but but the real like I I I I was like it's I I was before I get into this I seen right a comment of people going someone going do you like the budget or do you not like the budget? And like 80% of the comments were yes, yes, amazing, fairer, this, but those people didn't watch the budget. I'm telling you right now, they would not have watched the budget. They would not have sat there and worked out. What they're working out is going, I'm getting an extra 250 bucks and $1,000 instant tax deduction. But what they're not watching is everything else that that that is happening. So yes, you know, everyone I talk to, I go, I've never I have not met one person that I surround myself with that have voted for labor, right? So it's not >> Eric, you you got to understand there are podcasts being released today at the same time celebrating that the greedy property investors have finally had their loopholes closed and the incentives shut off. And you know like there are universes of podcasts that that are going to be arguing the complete opposite of this and saying there's less homes in the market now being snapped up by investors. there's more homes available to people who need them and not for just wealth creation but to be lived in. But I I I just want to make a point that in Bitcoin we have a saying called signal versus noise. And I think that what I'm trying to do here for running unemployable and you guys with me is that we try to say what can you do about all of this and all of this math and law and everything is noise, right? What you've got to say is what's the signal here? The signal is that we have an incompetent government that is spending and needs money to fund the gross bloated nature of the country and they're coming to get it from the people who are creating the jobs and taking the risk and are prepared to go into debt to provide housing for other people and the upside is they can get wealth over time if they hold those properties. So the the signal is they're coming after productivity and so you as a sovereign individual in my mind need to be thinking where is this going if we take this forward and they're not looking internally and going how do we make massive cuts in house?

[00:44:05]How do we get more from our resources?

[00:44:07]How do we get more out of this great country that should be super rich?

[00:44:10]Instead of going after the the people who are taking the risk and working hard so that's signal versus noise something to think I've got one task for everyone.

[00:44:18]Thank you for that, Adam. I got one task before I go into the CGT for everyone.

[00:44:22]Okay, this is lower class, middle class, high income earners, millionaire, whatever you want. Okay, whoever listens to this and and gets value from this. I want you to do some research and go, what is your average rent right in the area that you live in today? What is the average home in your area today? Mark it down. Do a voice note. do a video, right? And just say it is May 13, 2026, right? They're saying that it's gonna rents are going to go up by $2 a week on average, right? Find your local area, wherever you want to buy in, rent price, average home price, and record it and document it and make sure you save it somewhere so you can see it in 12, 18, and 24 months. And then then you can do your own comparison rather than you know what what we think and then that's going to be the the real um change that that has happened and I think >> it is going up >> rents are going up >> dramatically >> and and the more that the more that debt the more that debt and debasement rises in this country and it doesn't look like that there's any plans to to to pay it off. it's only going to continue to to go up and rise. You're just going to see property prices go up with that debt into basement and it's basically probably going to going to keep pace because if you look at the charts, that's what it does. The real the real takeaway is if you don't have a property, you need to get into the property market because Eric is 100% right with relation to rents and costs.

[00:46:02]Like I think that the people that will be like you said the rich will adapt and and they'll do what they need to do but the ones that are going to get hit hardest are the ones that after this decide still not to buy a property. They are going to get >> you're talking about one to live in though Mark right. Well, you just have you just you just have to have a property that is going is in an area that's going up or there is absolutely no way that you're going to keep up with the inflation that is going to occur because this is going to be more inflationary in my opinion.

[00:46:33]>> Well, the CGT right when you look at it, the incentive is now for people to buy their own home. This is what it is. What they want is >> think of the impact that has on like people though, right? Like you saw it, Eric. You you had somebody working at MX who had a great job, but she has to move to a [ __ ] area because she can't afford to even live anywhere near her work on the Gold Coast. Not even close.

[00:46:58]>> It's >> so what my saying is is correct, but look at their options and how that's actually going to impact their life.

[00:47:04]Like I'm a huge believer in the impact of where you live impacts how you feel.

[00:47:08]>> I agree.

[00:47:08]>> And have you been to those Greenfield estates? Like [ __ ] me, I wouldn't want to live there.

[00:47:12]>> Yeah. And and that's the thing, right?

[00:47:15]like you you have two choices, right?

[00:47:18]You either buy where you can afford or rent where you want to live because you're not and where you want to live. Most people can't afford it.

[00:47:28]>> And and that's >> not not even middle class, not even wealthy, right?

[00:47:32]>> That's why the only the only is >> is to buy in a green fields estate where you're still getting the negative gearing benefits and you're still getting the capital, the CT discounts.

[00:47:42]You have to buy there. you have to bite the bullet and rent in your middle ring suburbs for as long as you can. But I guarantee you land prices will double in these areas inside 5 years. And so if you didn't buy there, you're never going to be able to afford those middle ring suburbs because if you've got this thing in your mind that property prices are going to drop 50% or one day they're going to be affordable and you'll be able to buy in a city or 5ks from Brisbane. I still don't think that's going to happen because inflation is going to be such a problem and property prices will keep up with that inflation and that debt and that debasement. And so the only way is still going to be to trade up. Listen, it's like when Trump says, "Our market is going to be the best market. It's going to go up like a rocket ship. You should buy stocks." You should listen to him when he says that.

[00:48:23]The government has basically just said the same thing to you last night. It basically said, "This is where we're going to pump property prices in these areas. You better go out there and listen to them and buy properties in those areas if you're not on the ladder because property prices are not going to drop 40%. They're not going to allow that to happen." Mark, you know, like even with the 5% incentive, right? The 5% deposit, like who's not taking that on, right?

[00:48:50]Like like if I'm a firsttime home buyer, if I'm a firsttime home buyer, >> right? If I'm a first-time home buyer, yes, it's pushing prices up. Yes, it's pushed prices up a lot more, right, than they initially um modeled.

[00:49:06]But if you can't buy a house with a 5% deposit, you'll never buy one.

[00:49:11]You'll never buy one. The incentive is already there.

[00:49:15]But the thing is, majority of people can't buy. Not even with a 5% deposit.

[00:49:21]Man, that's 50 grand. 50% of Australians right now have less than $1,000 in their savings account. That's one out of every two people if you line them up. Imagine this is the issue, right? That is the ma the the main issue. But again, let's let's I want to go into the CGT if you guys allow me to. So you guys ready to >> guys? We got we got 15 minutes and I've got a hard stop. And I'd like to hear Mark's impact on this story that I promised at the start of the week and why people like Mark will just leave eventually and they'll take plan B and come and join me in barley and take all the stress out of their life.

[00:49:56]>> Go ahead in in Yeah. Go. So, CVT, I've already explained how it worked originally and now the indexation. So, let's use an example of an asset you've held at lawn in uh 12 months. You bought it for $500, right? You sell you sold it for a million. There's a gain of 500 grand. 250 grand of that you keep. 250 grand of that you pay tax on. So, you're paying tax on 25% of it. Okay. So just just Eric just made a little error there. Just you said you buy something for $5 and sell it for a million or five.

[00:50:32]>> Oh, did I say $5? 500,000. Sorry.

[00:50:35]>> So if you buy something for 500,000 you sell it for a million, it's a $500,000 gain.

[00:50:39]>> So just explain it again.

[00:50:41]>> Yeah. Right. So you've got that gain, right? So you've now got if that $500,000 property you sold it for a million, you have a $500,000 gain.

[00:50:51]There's then 50% of that which is 250 grand you pay tax on the other 250 >> is exempt.

[00:50:59]>> Right. Across everything. So this could apply to Bitcoin. This could apply this is not to do with negative gearing. Now guys we're talking about tax on gains on assets >> on gains on an asset. Correct. Right.

[00:51:10]>> And particularly the key thing here is if you hold it more than 12 months 50% of the gain is sort of siloed that you get to keep without having to pay tax.

[00:51:20]The other 50% you have to pay tax on.

[00:51:22]>> Yeah. So now >> and the change is >> And the change is so if you own property already, it's grandfathered in July 1st, 2027. And again, this is all from from the budget last night and us trying to explain it. From that day on, it's now using an indexation. So this is what we're talking before. So there's going to be two sides. Eight years you've you've got you're under this regime. you sell, you own it for until 20030, that's three years. You're in the indexation model and on and on assets like Bitcoin or stocks, that's going to be very easy because you can just look back in history and say the asset was worth this on this day. Y so that's >> there's valuations there's valuations that will need to be done >> and there's gonna be interesting >> there's going to be interesting compliance and and stuff here because some of these assets are going to go down like you know if you've got Bitcoin or crypto or something and it goes down they're not going to they might give you a credit but they're not going to give you a refund on >> correct >> anyway so so so now the indexation side it indexes it indexes it for inflation right So they don't use the actual sale price. So think about it this way.

[00:52:38]>> But a minim minimum tax of 30% as well, right?

[00:52:41]>> So So well, let's let's let's work this out. $500,000 adjusted and say it's inflation was 20% over that time that you've that that you've had it. All right. The indexed base cost now is 600 grand.

[00:53:00]500 plus 20% is 100.

[00:53:05]5 + 1 600.

[00:53:08]Got me? Your sale price was a million bucks.

[00:53:15]The new index price is 600 grand. Your taxable gain is now 400.

[00:53:23]>> So you're not paying tax on 250.

[00:53:25]>> You're paying tax on >> 400.

[00:53:28]>> 400. an extra 150 grand. And if you're paying 30% tax, that's 45 grand more in tax that you would need to pay in that scenario.

[00:53:38]And that's God, I hate Australia.

[00:53:42]>> So, >> I just hate the complexity of all that [ __ ] >> Yeah. Yeah. Exactly.

[00:53:46]>> Very complex.

[00:53:48]>> So, it's gonna it's basically it's going to hurt people who who buy Bitcoin, crypto, who buy stocks. They just found a way, Mark, to make it they basically found a way to make it less than giving you half taxree. They've just found a formula that makes a bigger taxable event. That's that's basically it.

[00:54:07]Instead of just saying, look, half of the gain, if you hold it over 12 months, half of the gains taxree, you pay your tax on the other half. They've created a little formula saying, all right, you bought it for this. How long did you hold it? Let's add some inflation calculation in there. And remember, these inflation figures are [ __ ] right?

[00:54:23]>> They make them up, right? their inflation figures are what they say they're going to be >> to stay in power, right? Like if it be, you know, they say that the target of inflation is 2% or whatever and they change what they put in the basket to measure it to keep it appearing low. But what Australian listening to this has had a two or 3% increase in their power bill, their insurance bills. You know how how many Australians have had a home that's only gone up two or 3% over the last 10 years? It's only two or three% if you exclude absolutely everything that you [ __ ] need to live right like >> these anomalies, right?

[00:54:59]>> Sham, >> let's use the scenario what you just said earlier about Mark's story. Adam, because if you use the index scenario on that, if that happened after July 1st, 2027, the impact would be massive.

[00:55:14]>> Mark, tell us the story because I know people want to hear. We promised at the start.

[00:55:17]I've got I've got a run in like 10 minutes.

[00:55:20]>> Yeah. Well, um I mean I basically told the story of how I I bought $15,000 worth of Qualcomm options on my last plot. I bought $15,000 and I turned it into 200 that now well it tap last yesterday kind of that 15 grand had had US had turn 13 grand had turned into a million US right now. I hadn't kept it for a year. So if I had have sold it, I would have been liable to pay tax on the whole amount anyway. But if you're able to buy shares, you know, if you if you buy S SanDisk, the memory stock, if you bought $10,000 worth, it would be worth a million dollars now, whatever, right?

[00:55:56]So, if you're able to buy stocks cheaply or crypto or something cheaply, hold it for over a year, and it turns into a million or $500,000 win, you're going to be now paying tax on the whole amount rather than having 50% of that tax free.

[00:56:10]So, it's going to disincentivize investors and and people who who are going to, you know, we've been we've been saying that they're going to come after property. They're going to tax property that that there's an opportunity to buy things like gold, buy things like Bitcoin, buy things like AI stocks, but they're going to disincentivize that because now that 15,000 that turns into a million or 500,000, you're going to get taxed on the full amount of that. So, they So, they're going to disincentivize >> tax. They're going to they're going to tax the competent, right? So, >> which which going back to Eric's point, if you've only got $1,000 in the bank, right? Or if if if you're one of those people that can't get a deposit to buy a house, one of the last remaining life rafts that you have was to buy something like Bitcoin to invest a portion of your pay packet in it. If you invested $30 a day in Bitcoin from what is it, I think it was like from 2016 or something. the guy who did it from 2015 or 16 to now $30,000. $30 a day would have been like $167,000 and now it's worth 1 point something million.

[00:57:18]>> That $30 a day, most people can can scrape that potentially, but they can't buy a house because they own the savings, right? So that life raft that was there for those people who can't save up for a deposit for the house, that's gone. So that's why that's why in my opinion this this budget hurts the lowest income earners most. And that's why for me, >> right, >> it's got nothing to do with just property or else they would have siloed it to just property. Why touch shares?

[00:57:47]Why touch Bitcoin when it's just property? You right. Like you're trying to >> young people get into property. What does Bitcoin and shares have to do with that?

[00:57:59]>> Exactly. And that that's how you know that it's that that's just the story.

[00:58:03]That's just the cover story really. It's >> I I see I see a world guy guys emerging in Australia of young people who are not going to go to property and they're going to hear stories like what Mark just said and they're going to be looking at, you know, prediction markets like Khi and these other ways to make money. I meet them all the time now at events in Bali or wherever I am and they couldn't give two shits about Australian property because they figured out that they can learn options trading, they can learn crypto trading, they can learn AI and invest in AI stocks. And I think you're going to see more young Australians just going property is off the table for us. And the the thing about it is the people who learn to master what you've just explained, Mark, that you turn 15,000 into a million in a week. Like those people are the most mobile. They can open they can leave.

[00:58:55]They could be set up in Panama in 3 months with a residency card and open up as a Panameanian citizen and travel the world taxree and paid for by the savings they're making just on not being in Australia anymore. They're just going to leave. And I can because they don't need Australian property to get rich anymore.

[00:59:10]And you know, the longer people stay with these changes, if they do exit, they're going to when I exited, I had to pay CGT on all my assets at the valuation of the time I exit. So I had unrealized capital gains tax. And fair enough, right? Like I I I made gains while I was Australian resident that they take their hit. But now that I'm out, I'm out. If people who wait, it's going to get more and more and more expensive, not only because the assets are going up because the rules are changing on what you're on the tax side as well. So it's it's um the issue it's going to incentivize more people to leave.

[00:59:41]>> Yeah. Yeah.

[00:59:42]>> And and the people who who you know if you think it's people like Mark, oh well [ __ ] that guy. I mean he turned 15 grand into million dollars. What do you think the big end of town does? The big end of town that's the kind of returns the Trump family make on their insider trading and [ __ ] they do, right?

[00:59:58]Like the big end of town make those obscene returns, right? while they're telling the the politicians what to do.

[01:00:05]And you know what you're what I would be doing listening to this is going, you know what, I need to [ __ ] figure out what Mark's doing. I need to start figuring out how to actually play this game because you you know, you can hate the game, you hate the player, but you know, figure out how to get on the right side of these changes for you and your family.

[01:00:21]>> And that and that, you know, that's what I've been basically that's what we've been doing in this channel 50% of the time at least. That's what I've been doing on my channel, talking about chairs and investing for your freedom because the reality is this.

[01:00:35]You will have no nothing or no more than everyone else and you will be happy with the way that Australia is pushing it to be. What they're basically what they're basically saying is you will have your job or you will have your business, you will have your home, but you can't have anything beyond that because if you do, we're going to tax you for it.

[01:00:54]>> Um, so we have That's the signal.

[01:00:57]>> That's the signal, Mark, right there, that people need to understand. And and you got to think this is a club.

[01:01:02]Australia is a club. And there are great benefits of being in that club, right?

[01:01:06]And here's the price. So, as a sovereign individual, you got to make a decision.

[01:01:10]Are you prepared to pay the price to be in that club? And some people say yes, great, happy days. But I think those people say, you know what, I'm going to look at some other clubs and and I'm going to pay my exit fee and go join another club. Okay? And then and long long term that's my biggest fear is that you know all what you do is you push out the best and the brightest talent and if you have a country that's run and led by >> it's not going to happen. It is happening. It is happening. I I can tell you for sure it is happening because you're incentivizing it. You're incentivizing the people to leave. You know like that's what you're doing >> sometimes. We got to run. Eric, you want to have a closing statement?

[01:01:51]Man, honestly, the closing statement is you need to decide like my wife and I, Mark and I have been talking today, you know, of having difficult conversations on what to do because the easy thing to do is going, "Oh, it's easy for you to say, Adam. You're single. You have money. You can do whatever you want."

[01:02:09]But a lot of people, there will be a lot of people that don't have the option. I mean, everyone has an option, but a lot of it's going to be a lot more difficult for a low-inccome earner to just pick up and leave when they don't even have enough money to put fuel in their car, right? To then pick up and leave and go somewhere. But if you're someone that has aspiration, if you're someone that wants to build more wealth, you got to start thinking of different ways of doing that. Because right now, we didn't even talk about trusts and trust structures and the changes in that.

[01:02:41]They've closed that loophole now. and every loophole looks like they're just coming in and closing. The only hope I have is if there's a big change that comes into parliament moving forward, but if Labor solidifies themselves as they are and and and they're here for years to come, in my opinion, it's going to get worse here and like you nailed it on the head. There's a lot of advantages of being here, but there's a cost to it.

[01:03:05]And you got to decide and start weighing up if those benefits are worth it for your lifestyle, for your health, for your head space, >> or do you do you make a big change?

[01:03:19]>> And Adam, I'll let you finish, but my my closing comment would be, you know, Australia here is not fixing the wealth ladder. They're just removing the old one, and then they're asking people to jump higher.

[01:03:30]>> That's what's happening.

[01:03:31]>> That's it. That's part I feel for the for the aspirational Australians. It's just getting more complex and it's getting harder and harder. But I want you guys listening because I know our audience are those aspirational Australians. They live in the same echo chambers we live in. Do not underestimate how many Australians are [ __ ] happy by this change. There is a lot of people in Australia that think this is fan bloodytastic and are celebrating and love elbow and they all get a vote and so when we go how the hell did Labour get elected again mark my words I wouldn't be surprised they get elected again after this.

[01:04:09]>> Well the as wild as it sounds I I can tell you right now there's millions of Australians that are [ __ ] cheering.

[01:04:16]they will get elected and again like I started the show by saying this is Liberals's fault because they have such a pissweek party so Labour will get elected again but what you will see is Pauline Hansen take way more seats than initially thought and that's going to shake things up and you know I've I've spoken about that but >> what's going to happen >> how is it going to >> but what's the cost going to be for an aspirational Australian to stay around while we go through this again and and and well, while you go through it again, I I've I opted out because I see where this is going. I just made a decision for me and just went the sooner I jump ship. And I think that there's going to be I think there's going to be capital controls. I think there's going to be um more and they're going to tighten the news, they're going to make it harder to leave for the producers because they're going to be able to sell that story really easily. Like now, if you want to leave Australia, then [ __ ] you because I see in the comments, I get ravaged. You know, don't let the door hit you on the way out, you scumbag millionaire dirt bag. Like I get it all the time in the comments. They hate people who leave. So the Labor government or whoever whatever the government will just sell the story, yeah, let's make it harder for these [ __ ] who have decided to pay their exit taxes and just no longer consume our goods and services and the benefits.

[01:05:34]Let's just make them the next villain and they're going to make it harder and it's going to be an easy sell. And so, you know, you're going to become even more of a villain. They already think I'm an [ __ ] but they the next ones, the next generations, you're really going to be Anyway, >> Wayne Wayne Gretzky was a was the best hockey player in the world still to this day because he was the best at anticipating, right, where the puck was going. Obviously, you've done that a couple years ago, Adam. You anticipated where the puck is going and now you're bearing the fruits of that decision. I didn't think the puck was going to go to where it is today. So I didn't anticipate I knew there was changes coming and there's been changes and it becoming harder but this is a big eye opener um for for a lot of people that are what we would call aspirational people that want to make change and have gener generational wealth with the f for the family and whatnot and there's some big big hard decisions even for myself that's very very uncomfortable that I'm having with my wife right now she'd pack up and leave tomorrow I'm the one that's in my mind holding back you know but What you guys need to do is where is the puck going for you and you got to make hard decisions. There's some hard decisions that are going to be made for a lot of people, but there's a lot of opportunity on the other side of those decisions.

[01:06:51]>> Yeah. I think guys to close this up because I've got to run to an appointment, but we want, you know, we we get no joy in seeing aspirational Australians struggling. That's why we run the podcast. And we want people like Eric, for example, in this country because Eric came here as an immigrant.

[01:07:07]He invested what capital he'd acquired as a young man from taking risks in Canada. He didn't have anything really, just a few hundred grand probably and equity from properties in Canada. And he invested it all into Australian small business. And that small business he invested into became a company called mxtore.com.au.

[01:07:24]And that business today employs roughly 170 Australians. Has paid a fortune in taxes along the way, I'm sure. Um, these are the types of people we want here.

[01:07:33]But people like Eric are going to be watching from afar when they're making decisions for their young families and how they're going to go on a 20-y year run somewhere. And they're going to look at Dubai. They're going to look at Panama. They're going to look at Bali.

[01:07:44]They're going to look at Thailand.

[01:07:45]They're going to look at Australia. And they're going to go, "Hm, where do we want to go and do our 20-year run to try and get our family from lower class to upper middle or wealthy?" And Australia is making itself less and less and less attractive to those people who come in and invest their capital, start businesses, create jobs. And that is a problem. And the ones that are here or there in Australia that are doing it and can exit are starting to now. I get it every single day in my DMs. I'm getting people, I'm leaving. I'm out in three months. I'm out in six months. I'm out in 12. I'm going. And this is just going to turn that dial to 10. And that's bad for Australia. um and and could cause in Australia that you don't want to go back to in the future, which is devastating to say as somebody who loves the country and grew up there. So guys, thank you for your time. Thanks for getting on the emergency pod, guys. Good to be back.

[01:08:39]Going forward, we got some amazing podcasts in the can, already recorded, ready to come down the line to you, and hopefully we could be more positive in ones going forward. Um but we got my one is out on Friday. The first pod back is the most intimate interview I've ever done. I think you'll get a lot out of it if you want to hear very deep um dissection of what I've been up to over the last two years. Um the trailer's already dropped and I've had so many messages. It's it's going to be a really interesting entry back and we got lots more great interviews coming. So, thanks for being with us, Eric, Mark. Good to see you guys >> and uh we'll see you guys on the next one. Bye for now.

[01:09:19]>> Hey there. I hope you enjoyed that episode of Unemployable. If you'd like to watch another episode, just click there.