They're calling it intergenerational fairness. It isn't.budget breakdown

Alright. Alright. A big welcome, everybody. Hope you guys are good. Hope you are having a great Wednesday so far. So, team, firstly, let me know you can see and hear me okay. That would be great. Just wanna make sure we're all, we're all working before I dive in into things straight off the bat. I've got a lot I wanna cover with you guys tonight, especially in regards to, obviously, this whole section is very much around the budget, and I'm going to be breaking down what it really is all about and how it's going to be impacting investors, you as individuals and you as investors. Now, before I do that, I want you guys to tell me what you think about it first and foremost. Like, how do you feel about it? Like, and I think some of you probably know my perspective, but what do you like about it? What don't you like about it? Put in the comments for me, put in the chat for me, let me know what you actually think about it. Shit sandwich, Jet. Yep, I use the word shit show, but you know, shit sandwich works as well. Yep. What do you else— you guys think about it? Totally missed every boat. Yeah, just when we need another tax, David. Yeah, crappy. Yep, yep, that's a nice way of putting it, Deborah. You're being very kind there. It is not intergenerational at all, Janice. I completely agree with that. Scammers are the good guys and the government's the worst. Yep. Look, this is a massive tax grab. It's a massive money grab. It is. They are harvesting is what they're doing right here in alignment with Agenda 2030. Can't agree more, Cam. This is a tax harvest and this is the government closing the net even tighter on everyday people and everything. And here's what they're doing. They're pointing the finger and going, the wealthy, they're the ones to blame, or investors, they're the ones to blame, or generation, you know, the baby boomers, they're the ones to blame. And so that's what they're using as, hey, look over there while we go and do this over here. That's really fundamentally what is going on. Guys, it's not, you know, they kept putting it under a housing budget conversation, but what they're really doing is that they're reallocating all how they do the incentives and things like that to actually start moving the money around. And yeah, Nico, like, I don't know if anyone's seen the memes running around or the splice-ups of videos showing how many times that good old Albo said, you know what, we're not touching capital gains or negative gearing, you know, so many times. And then 2 years later, they turned around and they broke their promises. Not surprising. And that's what's gone and happened. So what I'm going to be focusing on in this whole section is that we're going to take one topic at a time. We're going to dive a little bit deeper on that one topic. I'm going to focus on really how it's going to impact you as an individual and you as an investor. And there may or may not be a few rants along the way in there. Because this stuff really upsets me, really gets to me. And we're going to talk about some of the big division stuff, Rosemary, as you're talking about the big division stuff that's happening and some of the big underlying structural shifts which is going on as well. And where if you really look at where the money is going, what is the agenda that is— yeah, blinder, exactly, May. If you look at where the money is going, you can really follow the breadcrumbs and start to understand where the where the agenda actually is and what's really happening. So now without further ado, get into it. Now before we— yeah, Jet, I can't agree more. Yeah, let's hold that thought. I'm going to get into that. That's a big one. That's a massive one, Jet, what you just brought up about the build-to-rent. Follow the money, understand where it's going. Now before this budget was released, and if you listened to any of the noise that was going in and around all of the media and what was being leaked and what the government was saying, What were they making this budget about? What were they making it about? Like, what were they trying to suggest is, well, this is going to be big reform and it's going to do this. Like, what were some of the big topics they were talking about before the budget was actually released? Yeah, intergenerational fairness was one of them. What else? And underneath that encapsulates a whole lot of stuff, right? Affordable housing was certainly another one. That was probably one of the biggest ones we kept hearing over and over again. Was there anything else that you remember? Cost of living relief. I mean, great. What is it, like a couple of grand if they're lucky? Helping young people get into the market, Janice. That's an interesting one, right? Because they're talking about helping young people get into the property market, yet they went and put capital gains tax on shares and every other asset class as well. Just think about the logic behind all of those type of things. But, you know, everything has really shifted underneath. Now, at the same time, their spending isn't decreasing. The budget is going to be blowing out another many, many billions of dollars over the next kind of 5 to 10-odd years. So they're certainly not decreasing anything, that's for sure. And they're not cleaning up their own act. They're just sitting there going, how can we grab more tax from everybody else with everybody else going on and put it under this intergenerational fairness type of thing? Now, there's 5 probably major themes that are going on now. Team, if you see me looking over here, I've got some notes there with me. So there's a great tax harvest. That's 100% fact. There's a repricing of ownership. So what they're talking about is that, well, we want to decrease the tax on working Australians and we want to increase it on the tax on people who own assets. Now, here's one of the fundamental things that I have such a major issue with, right? And this is true with baby boomers. Baby boomers are getting smashed and it like, so they should have their assets. So they should, like they spent 40 years of their life working and bought some stuff and it's grown in value. They held their assets. They didn't go spend it on avocado toast and all the different things they're talking about. So they bloody well should. And so yes, does it make some things harder for young people to be able to get into the marketplace now? Sure. Well, how bad do you want it? What are you willing to do to be able to go get there? And what's really interesting is that how younger people can start investing in shares and cryptocurrency, but let's whack a tax on that as well. So there's this big conversation about repricing of ownership and they want to hit more taxes on people who actually have assets. On top of that, we've got the institutionalization of assets. This is a big trend which is continuing. There's productive versus passive capital. So when you're talking about operating businesses versus new construction, the small to medium enterprise, passive appreciation is being penalized. So they want everybody like, you know, the harder you work type of thing. And then when they're talking about cash flow, it's punishing deferral and rewards yields. And so some of the stuff that they're doing around bucket companies and discretionary trusts, And they're sneaking in a death tax with it. They wouldn't dare call it that, but that's really what they're doing. They're sneaking in death tax as well. Now, I probably want to start in the world of property investing. Property is probably one of the biggest conversations that was happening. Now, there's a bunch of timings in around this, which is going to be important to understand. Now, all of the things that I'm talking about, none of these are effectively passed law and done. This was just the budget. They still have to go through a bunch of different things to be able to get there, although I can't see them doing any backflips on these major things. If you've been following the news or following newspapers for 20, 30 years now, you'll see that Labor government has been talking about capital gains and negative gearing. It's been a topic of conversation for a long period of time. And if you have a look at what's been happening in recent times, they went after superannuation, and so that's happened now. They've been quietly raising taxes on various other things at the same time, and now they've gone after trusts, they've gone after negative gearing, they've gone after capital gains. So they've literally taken everything and they've gone after everything. So I can't imagine that they're going to backflip on that now, especially seeing they've ripped the bandaid off. And I feel that this is just how it is. And so we need to start thinking about, well, what are we going to be doing differently and how are we going to operate in this changing style of environment. Now, the negative gearing and capital gains tax, the grandfathering cutoff was 12th of May, 2026. We'll talk about that. We're going to, you know, the new regime begins 1st of July, 2026. So electric vehicles, food and beverage taxes begin 1st of April, like 2027, 30% minimum tax on discretionary trusts, That's going to begin on 1st of July. So they're giving people a few years to be able to roll over. But I don't know about the financial help. I don't know about stamp duty. I don't know about what you're paying along the way to be able to transfer your assets to other things. So they haven't come out with any direction or understanding around how that's going to work. And the 3-year trust rollover is going to close on the 30th of June, 2030. Right. So that's what's some of the core things that we're talking about. So there's a few years we've got to be able to restructure some things, those that have some things in some entities. But we have to understand that it is becoming increasingly more difficult and they've raised their budgets for the internal government, particularly for the digital identity. So I think they raised from $300 million to develop the digital identity up to around $600 million. I've got some of the actual conversations in and around that. The digital identity is really just the start of a credit system. That's really what it is, what we've seen happen in China and different places. God knows why they needed to double the budget that's going in on there. And they've also increased the coffers for the taxation department for chasing after tax minimization stuff and things like that, right? So they really are trying to close the net as much as they can on everyday people around keeping your business your business and keeping more of your money in your own back pocket. Now, if we talk about the world of property to begin with, they've been— so in the world of property, let's talk about the 2 of the big things. We're talking about the negative gearing, changes in negative gearing, and we're talking about capital gains tax. Now, is that on every single property or is it on a certain type of property? Is every property being hit or is it on a certain type of property? Yeah, and what certain type? What's the certain type of property that they're targeting? Yeah, it's existing homes. And why do they say— why are they targeting existing homes and why are they getting new builds to be exempted? What's the reason behind that? What's the reason behind that? Yeah, so their idea is that, well, if we— here's their idea, here's their perspective. If we go and scrap negative gearing and we go and scrap capital gains, what it's going to mean is that it's going to take out speculative investment in and amongst existing real estate, right? That's what it is. Now, what percentage of Australians own just one investment property? Because there's this thing about like how, oh, it's— they're pointing the fingers at investors. It's the greedy property investors. It's their fault for everything. Like, that's what's going on, right? And baby boomers. Greedy property investors and baby boomers. They're the fault. Now, what percentage of Australians own only one investment property? Just one. What percentage of those who even get into the market, what percentage just own one investment property? Yeah, 70%. So 70% of Aussies own one investment property. That's it. So what we're actually talking about is that the vast majority of property of investment property owners in Australia are just mum and dads, like whatever industry you're in, who have bought a single investment property to help support themselves for their future and set themselves up a little bit more. That's what it is. So this idea that it's this greedy property investor, like with someone who owned 4 or 5 or 6 or something like that, there's only like 0.06% of the population that own more than 6 properties. Like that's it. And so The numbers are drastically off and it's just a, again, it's just a point your finger type of thing. Now, so what they've said is that, well, your capital gains tax and negative gearing is going to be scrapped on existing real estate and it's only on, you're only going to get those benefits on new ones. Now, what they're saying that that's going to do is that, well, it's going to put some more demand for newer type of real estate, but let's talk about that in a moment. and it's going to take out the heat of the market from supposedly some very speculative investors that are overinflating property prices in major areas where people want to live. Now, none of this is going to work, pure and simple. None of this is going to work. The logic behind it is absolutely ridiculous. And what they're suggesting is that based on their own modelling, which is just internal, there's no actual modelling being done, this might increase the supply by 100,000 houses, But they're so far behind their housing build fund, yet they put billions of dollars into it, yet can't seem to build anything out of the marketplace. And they're so far behind, it's not funny. Does anyone want to fathom a guess at what percentage of the average property is— the pricing of it is made up of taxes? What percentage of an average property being built is made up of taxes? Yep, yep, Jet, it's 45% according to Pauline Hanson. Yep, I did a bunch of research on this and that's accurate. It's 40 to 45% of the cost of a house is made up of taxes, right? That's what it is. And so they talk about increasing supply, but there is nothing, like zero, nothing in this budget which is actually the money is flowing towards materially increasing supply in the marketplace, like literally nothing. apart from the institutionalization of real estate with the build-to-rent side of things. So their idea, well, if we stop investors from investing in existing properties, it's going to make it more affordable for people. What's really going to happen is that people who own real estate just are not going to sell anymore because quite frankly, they probably don't have to. And investors, if they're still targeting real estate, they're going to go out and target newer real estate. Now, where do they tend to target newer real estate? Like, where's the new real estate really being built? Where's the newer real estate tend to be built? Is it inner city or is it on the outer ring? Yeah. It's the outer suburbs is where the real estate is primarily built. And so, but that's also where the affordability factor is. And so what you'll find is that first home buyers and young families and stuff that want to get into the housing market, They're going to tend to go towards the outer rings where they can go and get some real estate which is a little bit more affordable than stuff that's going to be internal. Yet now what they've gone and done is that they have taken, they have put the demand on the outer ring for anyone, any investor who's chasing the capital gains tax exemption or the negative gearing. They've gone and shifted their demand from inner city stuff and they moved it to the outer ring for anyone who's chasing those type of things. So they've increased demand out there. So what that's going to do is it's going to put more and more pressure on housing prices and it's going to push prices up and it's not going to have the impact that the government is suggesting that it's going to make it more affordable. The properties that are in more inner city, which often tend to be tightly held, the reality is there's such a structural undersupply of real estate to begin with. I'm not seeing property prices fall in there in any way, shape, or form. Maybe there might be a leveling out and certain types of growth out there, but I actually materially don't think it's going to make a big difference. because primarily it's homeowners who own real estate. And so, Nico, you just put in there, so 66% of households own their own home, 31% outright, 35% with a mortgage, 21% of households own one or more residential properties other than their usual residence. So there you go. It's 79%. So only 21% of households even have one other investment property, and that's about it. And so none of this, not one bit, is going to have the impact that they want to have on it. Now, there are some nuances to this capital gains tax and the negative gearing. If you buy a property and knock it down and then build 2 duplexes, for example, then you can still— that's the definition of new, right? So that's the definition of new, but it's increasing supply. But if you knock one down and build another one, well, that's not increasing supply, right? So anything where it's considered to be increasing supply, is considered to be a newer type of real estate. So it's important to understand that definition of what new real estate really actually is. So now the grandfathering is important. If you own property prior to 12th of May at 7:30 PM, well, what that is effectively going to mean is that you are grandfathered in, right? You are grandfathered in. So everything, your benefits, negative gearing, your capital gains is going to maintain there. So what this is going to mean is that people who own real estate already are going to be— investment properties are going to be less likely to sell down, right? I spoke to my wife around this and we were just sitting there going, okay, well, because we're going to move overseas in a few years and do a few different things. So were we going to sell some real estate in Australia? Were we not? Were we going to trade some stuff? And the answer is no, we're not. We're just going to hold onto our assets. That's pure and simple what it is. Yeah, grandfathering is a joke. It changes after 2027. Yeah. So, well, no, for everyone who's got it existing, it's grandfathered forever and a day, right? But the impacts of some other things is going to come in, right? So what it's going to mean is that people who own real estate already is going to be less likely to sell. And so they're going to be more tightly held real estate. So that's a really important level of understanding. And so, yeah, it's only 71% of Australian property investors own one property, 19% own 2. If you own 6 more, it's like less than 1% is actually there, right? So where the investor demand is ultimately going to rotate, it's going to go to the outer ring growth corridors. Off the plan will still be a thing. House and land is still going to be a thing. Knockdown rebuild with added dwellings and build-to-rent type of developments. Now let's talk about the build-to-rent developments. Now this is an interesting stat before I get there. The supply side that nobody fixed. You cannot reduce affordability by suppressing demand without expanding supply. So as I said, taxation in government charges in Australia for new supply, for new real estate, 41% of the value of the home is, is in Brisbane is by taxes. Melbourne is 43%, Canberra is 47%, and Sydney is 49%. So 49% is just made up of taxation in terms of the value. You don't see any of them reducing that, like none of the development charges, none of the stamp duties, like none of that has been touched, like not even one iota, right? It's been left exactly as it is and they're just pointing the finger at other things. The grandfathering also includes your PPR as long as the contract was signed before 12th of May and could delegate it. Yeah, so the home is still considered capital gains tax-free when you sell it. That hasn't been touched as far as I'm aware. If someone wants to correct me on that, Please do. I think they're going to go after that later. That's what I think is going to be coming at another time. But that's a pretty big one to go after. But you thought capital gains tax and negative gearing was a big one and trusts were a big one to go after as well. But they've been systematically going after the sacred cows and slaughtering the sacred cows of this type of world. And does anyone know what happened last time to rents when negative gearing was slashed? What happened? Does anyone know? Yeah, Belinda, it should be— or that's a good question. I actually don't know the answer to that. If you move out and rent it out, it should be grandfathered. My belief— I believe that's the case. We would have to check on that. Yeah, so last time they scrapped negative gearing, rents spiked, surged by a massive amount. Like, they absolutely surged. Because what negative gearing is, it's really— it's a it's an incentive. It's a handout for renters, right? Because investors now get something back. They can hold real estate, which they provide to renters to be able to live in, and they get an incentive to be able to do that. Now, that incentive is now gone. So the holding costs of real estate for an individual has effectively just gone up, which means what they're going to do is that they're going to put rents up. That's what's going to happen. It happened before. It's shocking to me that the government didn't look at, well, what had actually happened in the past and can we actually learn from those type of things. That's the question you want to be asking. Now, foreign buyers have been excluded from buying existing real estate in Australia. They can only buy new real estate. So that was a 2-year ban already, that's now been extended until 2029. So that's still happening. So it's forcing more and more demand over to newer type of real estate. But If you don't handle the underlying supply dynamic, it's not going to make a difference. And let me tell you the reason why. Is any of my building clients here? Who's a builder? I don't know if any of my building clients are here. Yeah, Merrill East. Like, mate, like, Here's what I'm hearing from a lot of my clients who run construction companies, right? Just the material cost of building a piece of real estate. Now, depending on the type of real estate we're talking about, as a house, for example, but I hear this all the time. People own sites and they say, there's no point in us developing it because we can't, we're not going to get the value out of it because of the taxation and the development charges and all the things that actually go with it. And margins have been squeezed in a big, big way. Is that accurate or not, Mary-Lise? Because I've heard this quite extensively. So like, yeah, it's true, right? Yeah, this is true. So to get a real estate stack, the prices because of the cost and the cost of materials and the cost of labor and the cost of everything, right? It's to actually physically put a piece of real estate on the ground and then to be able to sell it to actually make a profit. And God forbid this business makes a profit. Prices are going to have to go up. Like, that's all there is to it. And so every single angle that you look at this, if you just, you'll see that it's not going to have the impact they want, right? It's just going to be a tax grab and that's all it is. Yeah, 8,000 planned homes for Forlans, affordable housing apparently. Yeah, look, apparently all that type of stuff. Working twice as hard to make half the profit we made 10 years ago, Mary-Louise. Yeah, yeah, this is This is on the ground. I hear from construction companies every single day because I work with about 15 to 20-odd investors who run from small to very large construction companies. And this is what I hear literally every single day and the struggles that go in with it, especially with a constant changing economy and the government coming in and fucking things up on a regular basis and changing the goalposts. And this is one of the biggest things. The goalposts are always being changed. Like everyone who had money sitting in superannuation, the goalposts got massively changed on that just this year as well. Or was that last year? Geez, time's flying. And we've seen this systematically happen over time. And this is why I'm not a fan of just having things in a retail super. The government just changes their mind on a regular basis. Yeah, I completely agree. It's emboldened by their supermajority win. I completely agree. They've just gone, we got that through, what else can we go after? And they're killing all the sacred cows. That's what's happening at the moment. And, you know, I'm pretty pissed about it. It's just hurting everyday people and it's just lies. I just can't deal with it. Now, the capital gains tax is important because it is not just a flat Originally we had the 50% capital gains tax discount is what it was. If you held a property for over 12 months of all, there was a 50% capital gains tax discount. From July 2027, that's indexation plus 30% minimum tax. So they've dropped that 50% down to that 30%, but then anything over the standard indexation, they're going to tax that bit. They're going to make sure that's indexed on fake inflation figures. It's exactly right. They just manipulate the things as they go. The cost base is indexed to CPI. Only real gains above inflation are taxed, right? So in a low tax inflation environment, if you have a good property, you've bought a good property, you've bought in a really good area and it's gone really, really well, well, the government's going to make a monster out of it. That's kind of what is happening at the moment. And it's just nonsense. So 30% minimum tax floor, even after CPI indexation reduces the gain, a minimum of 30% rate applies to the net result. Okay, so it's— you don't get that 50%. It's been changed in a drastic, drastic way. And this is a huge, huge structural change in the marketplace. Cool. Now, Not cool, but I think we've handled that. Does anyone else have any question now on properties? Anything else on the property? I want to move on to— oh, build to rent. Let's talk about that. So, and then I want to talk about structures. So if you look at where the money is actually flowing, if you look at where the money is actually flowing, there's been a lot of incentives being given to build-to-rent companies. So companies that do build-to-rent. Now, if you don't know what build-to-rent is, effectively, usually an institution which is big funds or superannuation or overseas, whatever it is, the government is giving out massive, massive incentives, tax incentives, reductions, a whole lot of things for developers to come in, build a whole bunch of supply in the marketplace, but they do not sell it. They just hold it to rent out to people. Okay, so then you go think about what that's doing. Number one, it's institutionalizing home ownership. Yeah, Belinda, let's talk about that. It's institutionalizing home ownership, right? That's what it is. And so we're going to have funds and we're going to have institutions as the nation's landlords, right? And, you know, this is no secret. BlackRock actually came out and they literally said, uh, we're going to be America's landlord. But it's not just America, they're doing it here in Australia as well. And the government is going, well, this gives us professionally managed rental real estate. And if you follow the breadcrumbs and look behind the scenes what's going on, their whole thing is that there's less and less people going to own a home. Most people are going to be lifetime renters in the marketplace. We know it's coming, we know it's going to be happening. So what we're going to do is that we're going to do all this. Yep, controlled by the WEF. Exactly. And what they're actually doing is that they're reducing supply in the marketplace once again. So these companies are coming in and they're not building real estate to be able to sell, which would be a fundamental increase in supply in the marketplace. They're going, no, we're not going to do that. We're going to incentivize these companies to come in and build a whole lot, but then they're going to keep it and they're going to rent it out to people. That's what's going on in the marketplace. So that is a big fundamental structure that's been coming for a while. It's not a big shift. That's just an acceleration of what's already behind the scenes. Now, the question Belinda asked, advice for people looking at buying property in the future, is it still worth it? Well, I personally believe it is. Absolutely. I think that unfortunately most people will be lifetime renters. That's what I think is going to happen to most people. I think real estate is something that's going to be fundamentally passed down from generation to generation. However, the government is going to be taxing that as well because the tax, the minimum floor on trusts is also happening for testamentary trusts. So this is the secret death tax they're talking about. So let's be aware that that is going on as well. And but here's what's going to happen. Despite all the things that they're doing, we still have got to come back and look at the fundamentals of why we invest in real estate to begin with. Okay. And we invest in real estate because people need it. people are happy that they need it to be able to live in. No one needs a share, no one needs this stuff. Everyone needs a home, right? And there is a structural undersupply of real estate in Australia. I don't think that's going to be changing anytime soon in any way, shape, or form. The government has proven they're absolutely useless at doing this. Whether they want to increase supply is a different question altogether. And if it's just part of the 20-minute cities agenda and just rent everything and don't own anything, well, that's another conversation to have. If we're going to put a I say my tinfoil hat, but it's not a tinfoil hat. Everything I've been saying for 15 years is coming true step by step. And because you just follow the breadcrumbs and you see it's happening. So do I think property ownership is still a big thing? Yeah, I absolutely think it is. And I also think it is from an ownership standpoint, right? And what I mean by that is that if you fast forward kind of another 20, 30 years, could even be sooner, I believe that food security and water security is a massive, massive thing. So we've already had the experience of the whole COVID situation with our, you know, a lot of our liberties being stripped out of underneath us. I think that this level of control is gonna increase. We're seeing it with also with the digital, the testing of the current digital currency stuff which is happening in Australia now. I know the CEO of the, I think it's Digital Currency Council Australia or something like that. She came and spoke at— who saw Amy Rose speak at one of our events that we ran for our investors. Yeah. What did you take out of that, by the way? And there was a whole lot of stuff she wasn't allowed to say. They're testing the digital currencies in Australia. It's happening like under our nose literally right now. And so that's coming. As that comes in, we're gonna see more We will. Yeah, ATO has massive access to everything. So privacy is going out the window. This currency can have an expiry date. If they want to tax you, they tax you. There's going to be— they want to track you, they track you. It's— this is what's happening right now. And so that is happening underneath our noses. People are moving more towards a lifetime of renting. So ownership is not going to be a thing. Yeah, digital currency, the digital ID is another big thing which is coming. So if you just look at all the different things that's going on, you can see the underlying agenda. It's all about control. And it really fundamentally is stripping away people's privacy, people's liberty, people's ability to decide what they're doing for their future and their ability to adopt towards that. So I think homeownership is still definitely a thing. And I— sorry, I mean, property ownership is still a massive thing. I still think it's a big thing. Now, Lisa, I've got— you're gonna get me started on a sidebar. I won't do that now. Now, got me sidetracked. What was I gonna talk about? I don't know. Anyway, property. Do it, do it. Egg me on. So I think it's a solid thing. It doesn't change. Do I like real estate as an asset class? Doesn't change in any way, shape, or form. Does it change a little bit how we do it, right? And does it change a little bit of those things? Now, I've never been against buying new real estate anyway, quite frankly. Most of my real estate that I bought has been brand new. So if you know how to buy that well and do the right thing, you can make a lot of money out of that. There's less maintenance issues, there's less a whole bunch of different things. So it doesn't necessarily— and most of my stuff was held under trust anyway. So it just materially really hasn't made any difference to me. for average people who maybe just have one investment property or something like that, it can make a big difference, right? But when you're growing a large portfolio, you might only do a few in your personal name anyway, then it needs to go into some entities. And that's probably a good segue for us to move on and talk about the world of entities right now. Now, but to be really important, Yeah, the 30% tax on trust does make a massive difference, Jet. It's a— what, let me— I'm going to explain that right now. But importantly, they haven't just targeted real estate. They've targeted every asset class. This whole conversation about it making homeownership more affordable, absolute bullshit, absolute utter crap. If they were going to do that, they just focus on real estate, but they haven't done it. So they're going, well, let's not do that. Let's focus on intergenerational inequality. And so again, I said it before, like you look at young people— yeah, Nico, I'm going to go through that company tax stuff and I'll tell you what they're doing. Young people investing that couldn't afford real estate, well, where would they invest? Shares, cryptocurrencies, smaller asset classes. And so they were getting into the market in that way to start building up their wealth, maybe to ultimately trade into real estate. Maybe it's where they wanted to build because what they could afford. But that's gonna get taxed as well. So how on earth is any of this actually changing this generational inequality? Right? And the answer is it's fundamentally not. Right? It's not happening. Yeah. Legal cigarettes and booze now and pokies. Yep. Go. I could go on about this, about Australia's exports and natural resources, how they're giving them away and all that type of stuff. Just, just insane insanity is going on. Now they are suggesting that they're going to be supporting like some more grants and stuff for innovation and startup things in Australia. Now part of the problem, one of the things I'm working on just digging into the understanding about is the capital gains charge on businesses and how, if that has changed, if how that has changed. All right. And also what it means for people who invest in companies, right? Because a lot of Australia's startup community, and this is the same around the world, when new businesses are being formed, it relies on a lot of personal investors. A lot of you guys invest in a lot of, you know, private businesses and things like that. And it relies on a lot of personal businesses to be able to get off the ground and be able to fund and grow their expansion. I'm not 100% sure how the tax situation is gonna be treated in that. Those who've invested in the hemp farm, for example, you know, I know you guys, we all got some tax benefits associated to that in terms of capital gains and things because we're investing in some newer technologies and new emerging type of industries. And so that was having a bit of an impact, implication as well. So they're saying they're going to— I'm committed to consultation on how capital gains tax interacts with startup and early-stage investors' employee equity. We don't know enough about that to really comment. That's a bit of an area where I want to be digging in. Has anyone seen the, the memes going around where business owners have put good old Albo in their photos about it being their new business partner? Has anyone seen that trending around the internet? Yeah, that, yeah, good old AI Albo is in there as his business partner. Yeah, welcome to my new, my new business partner. He doesn't actually do anything, but he's very clear on that he gets his 47% tax. Yeah, the 47% partner. He doesn't do anything. But he's very clear on it, and that's what it is. So I've seen a whole bunch of those coming around, and you know, that's very, very true situation as well. Now, one thing, this is a big one, and this is a big one. If assets owned pre-1985 were exempt from any capital gains tax. That is being scrapped. Okay, so this is like family farms, old operating businesses, long-held individual share portfolios, family real estate, generational holdings. If it was purchased prior to 1985, it was exempt from capital gains and all that type of stuff in, in its entirety. Okay, that is being scrapped. Now that is huge. Just like that is huge. And so it's not even being grandfathered in. So that's going to have a huge impact on, you know, intergenerational planning strategies and farms being passed down from generation to generation or being sold and stuff like that. Like it's going to be an— have an absolutely huge impact what's going on. Now, let's have a talk about structures and private structures. Because this is a massive one. So here's what is happening when it comes to structures. The government has come out and they said all trusts are now going to have a minimum 30% like a flat 30% taxation structure. Like, that's what they come out. Now, for those of you who don't know, I might just draw this out. Bear with me, team. I'm just gonna share my screen. Okay, with any luck, you're looking at a blank page. If you can see that, just say seen for me. Let me know you got it. Get all the way over there. Okay, perfect. Okay. So a lot of you will know that a very common business and investment entity is company, company trust structure, like very, very common. Why are you doing it to me? Stay. Okay. Oh my God. Okay, so this is a very, very common structure where you're going to have the company is the corporate trustee of the trust, right? And the benefit to these companies, these structures, is that there was this extra level of protection because you as an individual, like if you run your business through these or you owned assets through these, you as an individual weren't effectively the owner. The company was actually the owner of it. And so there's an extra layer of asset protection which is in these. Now, the other benefit of having a discretionary trust was that as this, you know, if you pass down like half a million dollars in income from this, from any operating entity that comes in here, you then have the ability to be able to distribute that out to some individual beneficiaries, right? Or other elements, or could be You know, it could be a beneficiary, it could be an elderly parent, it could be a child, it could be— or you even could have it into a bucket company or a holding company. Okay, so this was a really, really typical and common structure which was set up and laid out. Now, what that allowed you to do, and in the trust situation, 100% of that $500K had to be distributed. So you couldn't— it was not like a company where you can where you can roll over profits, you can hold capital in there, anything like that. 100% has to be distributed. But if, uh, you know, if Johnny here was on— was only earning kind of, you know, maybe a non-working spouse, right? Like, and they, they weren't earning anything. Well, you know, you might go and shove, uh, a whole bunch of money over here because they were on initially a 0% tax rate, and you may be able to put a certain amount over here which brings them up to a 30% tax rate. As opposed to an individual taking the full $500K and they get taxed at the full 47% tax rate on that. You might have another amount that is going to go over here and you might put, I don't know, $50K over here and $100K over here, whatever that looks like. And then you might roll the other $350K into a bucket company and that bucket company has a flat rate of 25% of tax that it pays. Okay, so That was what the structure was, and that's what was working. Now, what the government has come along and said that they're going to do is that they're going to put a 30% tax, flat tax rate on anything that comes into the trust. Okay, and this is really, really important, fundamentally changes this in a massive, massive way. So every bit of money, and it gets taxed at the trust level, every bit of money that hits this trust is going to get taxed at 30%. Now, anything that you distribute at that point in time comes down over here. And if, for example, if they're on, I don't know, usually a 20% tax bracket, then this money is going to come down over here And but it's non-refundable, yeah, non-refundable tax credit. Okay, so just just just breathe that in for a moment. So you pay the 30% over here, then you pass it down to here, and you the trust is paying more tax than the individual would. And so the government is saying there's a non-refundable tax credit. So you get a tax credit. But you don't get it back in your taxation over here, so they at the very minimum maintain their 30% tax bracket. Yeah, let's get to the double dipping, Naomi, because this gets a lot worse, right? It's really the bucket companies where they're double dipping. Okay. Yeah. So the bucket company is really what the thing actually— what the major thing is that's changing it, where you could actually be getting taxed at 67%, up to 67% if you roll things into a bucket company. Now, if you are already on a 47% tax bracket and that you're getting a distribution out, then you get a tax credit to the amount of the 30% because you're already on a higher tax bracket anyway. So what if that comes out at whatever the tax benefit actually is you get out of that, then I've got a diagram I'll show you over here, then you get a tax credit which offsets some of this 47% because you're paying a higher tax bracket anyway. So what the government is effectively doing is that they are deciding that they are not going to allow you to distribute capital to family members or bucket companies or anything like that who have a fundamentally lower tax bracket to be able to reduce your tax. Now, who is this going to impact? Non-working spouses. Who's this going to impact? Young people. Who's this going to impact? Anyone that may have, like, there might be some disability who are a part of this trust and they get these distributions which supports them in life. Like, so it's going to impact mums and carers, Belinda. It's going to impact everybody. It's blanket. That's what they've done. And it, like, such crap. Such crap. Now let's talk about the bucket company for a moment, and then I'm going to run through, run you through an example of real numbers and how it actually looks like. So let's talk about the bucket company for a moment. What they're doing with the bucket company, previously you would be able to distribute to the bucket company and it gets— you pay the company tax rate of 25%. Well, that's not happening anymore. So what they're actually doing is that they are They will tax you at the trust level, then they're going to tax you at the bucket company level as well. So, which is double taxation, which is actually illegal, but they don't give a shit. They do not care in any way, shape, or form. And they're literally committing crime right here. And they just don't give a flying, flying hoot. Yeah, yeah, exactly. It's just, it's, it's ridiculous. Now let me actually walk you through a real life scenario. Not a live scenario, but a mockup. There's so much cussing going on here. I'm so glad I'm on mute. Sorry, Lisa. Okay, I get a little bit upset around this. So how the budget just killed the bucket company. So I've just kind of mocked this up. So meet Sarah, runs a specialist medical practice for a family discretionary trust. Husband Mark's earned $90K as a teacher. The trust generates $400,000 in net profit annually. Standard structure, distribute to individuals up to optimal tax brackets, stream surplus to a bucket company taxed at 25% base corporate tax rate. So that's what it is, what it was before. So the trust net profit is $400K, you distribute to Mark $45K, distribution to Sarah $135K, stream to the bucket company of $220 grand, and then Mark has a salary of $90,000 externally, right? And so how the bucket strategy works, I'm too simple for section over here, is that as we said, Mark's got his $45,000 top-up of his salary, which is the optimization for where he needs to be. So Mark is going to pay a total of $33,000 in tax is what he's going to be looking at. So 0% tax on the $18,000, 16% tax on $18,000 to $45,000, and then 30% tax on $45,000 to $135,000. So we're keeping him under the $135,000 mark to keep it on that 30% tax level. Sarah gets distributed $135,000, so she stays on the 30% tax bracket as well. then the rest just goes over to the bucket company, which is a flat 25%. Okay, so that's what, where it is now. So if we really have a look at the numbers, the trustee tax flow-through is nil. So there's no tax on the trust at that point in time. The corporate trust corporate tax is 25% on $220,000, and that means it's $55,000. And so the total tax payable under the original structure was $122,000. Now, if we have a look at when they've— what the changes that they've actually made is, the 30% minimum tax at trustee level is paid first. So this comes out first, they hit it at this level. So if we do the same, the same transaction, like what we did over here previously, Mark is going to get his $45,000. Now he's going to get the full credit back out because he's on a 30% Tax bracket. Okay, so 30% of tax, tax trust level, 30% on the, the, the, his own income. So he gets the full credit, right? So it doesn't— there's no material change for Mark. However, for Sarah, because she doesn't get any excess credit, okay, she doesn't get the credit coming in here. So what that means that she gets distributed $135,000, there's no credit, that's all lost, it's non-refundable. refundable. And so what that means is that Sarah's tax goes up to now $40,500. So an extra $6,512 of credit is forfeited. So effective rate is now 30%, not 25.2%. But here's the biggest one. The bucket company is now double taxed. The trustee tax is at 30% of $66,000. It then hits the company and there's no there's no tax credits which are rolled over. There's nothing now given to the corporate, the bucket company, where previously there was. You get the fully franked dividends that comes over to the bucket company because the tax has already been paid. Well, they've taken that away now. So your total tax on the company is now $121,000 at 55%. So effective tax rate is 55%. I think the corporate tax is lower as $220K minus 66 minus times 25, effective tax rate still above 50. What's it minus 66 for, mate? No, there's no tax credit that's passed down. It's no, it's double taxed, mate. It's the, the bucket company Is taxed on the amount that came into the trust. Just that's an important point. Thank you for bringing up the just just breathe that in again. So you are not taxed on the net amount that hits the company. You are taxed on the total amount from the trust. Did everyone get that? No, it's not the net amount yet. It's absolute double taxation. This is why we're sitting at a 55% tax bracket. Oh, beyond cheating, Linda. It's beyond cheating. So if you have a look at the result, here's the real difference. You were paying $122,000 in tax total. Now you're at $195,000. That's the real difference. Compound that over a decade, it's $725,000, right? So that's the real difference. So this is one of the big underlying structural shifts which has occurred, and every trust is going to get hit, every trust, including testamentary trusts. So the government keeps going, oh, there's no death tax, there's no death tax, there's no death tax. Well, hang on. They're just hitting the one vehicle that families use to pass their wealth down because of testamentary trusts. So it's going to get hit on this level as well. But yeah, testamentary discretionary trusts. But breathe that in to begin with, right? Breathe that in to begin with. You earn the money to begin with and you're taxed on that. Then any income you earn from your assets, you're then taxed on that. When you sell the assets, you're taxed on that, and then you keep the assets in the trust. So supposedly, because there's money coming in there, you're going to get taxed on that all over again. Yep. So Karen, that's what it is. No one's going to go and put distribute to a bucket company. Bucket companies are dead. They're done. Yeah, bucket companies are done. They're useless. They're done. That's it. No one's going to do it. So what they're trying to do is get as much tax in the personal name as you possibly can. And so that whole entity structure is not going to work in terms of trust. Now, you may own your investments purely in a company, and at least you're only operating it at 25%, or We look at overseas structures, but that's not the conversation right here. Belinda, I dare say it's not going to be worth it anymore, right? And now the government is giving people 3 years to roll it over. Okay, trusts were the best thing to do, right? They were the best thing to do. Like, in all of my assets and business, it's all held in trust, right? And so they're giving us 3 years to change it. Right, with no penalty, so to speak. Now, what no penalty means, we have no idea about. If we were going to sell, move assets out of a— if we're going to move assets out of a trust and into a company, is it going to be taxed stamp duty? I don't know. Capital gains tax? I don't know. Because normally when you move money between entities, it's gonna then trigger these selling costs and things like that associated to it. So we've gotta understand what that looks like. There's— I haven't seen any notice about that or what that's gonna be just yet. That's a significant thing. And they're gonna give some guidance around that. Now, my feeling is they're gonna waive that stuff. They're gonna waive that stuff and allow people to roll over. That's what my feeling is. But they're also a bunch of pricks, and I don't know if it's gonna be true or not. So that's the other consideration. So this is a really significant Tony, yes. So what you said yesterday, I may think about Italy next year. Yes, mate, or this year, buddy. Like, as soon as we set you up, I'm going to ship you off to Italy, buddy, and then go set yourself up somewhere else. Um, and Nico, yeah, it's highly going to be, uh, yeah, most things are going to be held in companies now. Yeah, great. Yeah, who knows? I have no idea about that. I think Jeff's got the right idea. Just get a new identity and just, you know, ship off overseas somewhere. I've had 5 conversations in the last 48 hours of business owners and people who are moving. They're done. They said, that's it, I'm out and I'm moving all my company and moving my employees. I'm moving everything. I'm done. I'm out. That's what's happening. Yeah. Oh goodness. Yeah, no, PRE isn't, mate. No, they're very Australian-focused, buddy. Now there are a couple of things that aren't going to be caught. So some fixed trusts aren't going to be fixed testamentary trusts, apparently. Discretionary testamentary trusts will be. Special disability trusts, charitable trusts, Primary production income, complying super funds supposedly for now, deceased estates, existing testamentary trusts in place before 12th of May 2026, and certain income of vulnerable minors, right? So that's, that's the stuff that's not going to be touched. But the rest of it's going to have a pretty, pretty significant kind of impact. Okay. So yeah, there's 3 paths that you're going to be going to be doing about, like, you can either go into a PTY LTD, you know, convert it into a fixed unit trust or keep the discretionary trust. Okay. So those are a few things you need to go talk to an accountant about that. I'm going to get somebody in to have a bit of a chinwag what they're thinking once we get some proper direction out around what's actually what it actually means. And so what the rollover actually looks like, and we don't know what it's going to be at Point in time. Now, super funds are excluded from the 30% trustee tax. Well, that's nice of them. They've already hit that. So we won't really worry about that too much. We already know what's going on. Okay, some changes to Div 7, build to rent. Okay. Yeah. Yeah, there's so much going on, it's crazy. Now, what I want to talk to you about. Yeah, so foreign investor withholding tax has been cut in half to 15%. This is build-to-rent, the institutional alternative. Capital works deductions have been increased from 2.5% to 4%. The BTR developments are exempt from the new negative gearing crackdown. Like, so just institutions are just— they can do what they want, right? So they're getting massive incentives to come in and build a whole lot of supply in Australia and become Australia's landlords. That's what's going on. So institutional ownership is a thing. Long-term rent is a thing. That's the emerging model. The old model was every citizen owns their own property. That's not the model anymore. The new model is institutional ownership, long-term renters. That's what's happening. So now what else I want to talk to you about? What are some of the other major things that were impacted, guys? Could you become our own institution? That's a good idea, Belinda. Were there any other things that are on your radar that I've missed so far? Hey Todd, I can't seem to type in for whatever reason. I think the laptop's playing up. But what's, what's the possibility of any repeal on this through legislation and/or government changeover? Because there's a lot of people complaining and, um, this is not a happy place right now. So can you have any thoughts on that? I know you can't Well, you know, you don't have a crystal ball, but do you have thoughts? Thanks. Yeah, no, it's a good question. It's a really tough question too. I personally think the government doesn't give a shit. That's what I personally think. And I'm trying to temper my own leaning on this, but I've just seen too much over too long of everyday people get screwed and the breadcrumbs have been leading towards this for a long period of time. Now, maybe they'll soften some elements. I can't necessarily see how they're going to repeal some of these major things and pull it back after they've ripped the bandaid off at this type of level. I can't see that. Now, maybe we get a Pauline Hanson government come in and they're just going to backflip it, and that's a possibility, and I can see them do some things like that. But there's a reason that the government did this in midterm. So they made all these promises in early, um, in before they got elected. Oh, we're, you know, a man of my word and the government's got to do what they say and all this type of stuff. So they waited 2 years, made the changes, and now they've got 2 years for, for people to forget. So I think the timing was very strategic. Unfortunately, we don't have a Liberal Party now. That's— they're in tatters. So there's no one that's there standing up against what's going on at the moment. Pauline Hanson— and Pauline is doing her best at it. She's got a bit of a way to go, but people are certainly listening and looking at it. My feeling is that these are going to stay. That's what my feeling is at this point in time. And I think they've been moving towards this for a long period of time, and they finally got their chance where they don't have another major party that can stand up against them. That's what it feels like to me. And they've been systematically doing similar things like this for a decade now, and including in things like COVID, including superannuation, including digital identity, including all the different things that's going on. This has been coming for a while, and so I don't think it's going to be repealed. That's just my personal opinion, and I hope that I am absolutely wrong. Yeah, I hope I'm wrong. That's all I can say. Now, what else did I want to talk to you guys about? Was there any other big topics on there that you guys that I've missed? I'm just seeing if I've got any other notes here from when I was digging into all this. Yeah. Yeah, I think I've hit some of the main things, right? If anyone's got anything else in terms of the budget that I haven't touched on, please make sure you bring them up. Yeah, Judy, even like the SMSF, they're really not touching so much of the SMSF at this point in time. Yeah, Lisa, it's all right, we'll settle on the right place, right? I know this is depressing. So they're really not touching anything else with SMSF, like the trusts have been— they're not being touched in there. So SMSF is widely staying more so the same, right? So there's nothing really— they've already gone and messed up everything in there. So I don't think that they're going to be— they're not touching anything in there. So nothing much has changed in there. The big underlying thing is the ownership structure with trusts and companies and stuff. That's the big change. The capital gains and the negative gearing is the massive changes. We've got massive levels of increased funding coming in to build-to-rent and coming in for institutions. And so that structural ownership change is happening in a big way as well. But let's now just start talking about, well, what does this all mean and what do we do about all this, right? So yeah, Shares are grandfathered in as well. Yep. So anything that you already own is grandfathered in with your existing negative gearing, although there's no negative gearing, but your capital gains stuff, that's all kind of structured in there already. So there's nothing like that. Nico, was that some questions, mate? Capital gains tax impact on shares and crypto and business events like hemp farm? Yeah. So yeah, shares are grandfathered in. Yes, absolutely. And anything you already own is already grandfathered in, including the hemp farm stuff. Now, I'm not quite aware about how business investments are being managed. I feel it's the same as any other asset class, right? If you're just acting as a passive investor, like What they're going after is passive investors. They've actively come out and said, like, for— we're going to try and lower the tax for working-class Australians. Now, by the way, how much tax are they lowering? What impact is it going to have on people? Really? What are the changes going to be like? What's the material impact it's going to have? It's like $250, guys. Like, that's what it is. It's effectively nothing over, over a few different things that they're pulling back and stuff like that. Someone— I did the math— someone earning $140 grand a year might get an extra $2 grand back. Like, their tax reduces by a couple of grand. That's what we're talking about. So all this, all this thing about like Oh, we're giving this back and we're lowering the tax. If people actually understood what they're talking about, I mean, really? Because it's like for individuals, it's what they're doing is that they're lowering the tax bracket, what, from 15, 16% to 15% or something like that. And then they are— what else are they doing? the instant tax write-off, if people do with no receipts, if they do that. Yeah, like, let's not even get started about the fuel excise. So they changed the fuel excise a few years ago, right? And how much tax is being paid on the— oh no, the per kilometer that you could claim. They changed that a year or 2 ago. This year they kept it exactly the same. Then you go, oh, that's good, isn't it? Well, hang on a moment. What's the price of fuel done? Oh, good. Thanks for keeping it the same. Thank you, government. You're on our side. But the price of fuel has doubled. Like, come on. Like, I mean, you just look into this and you realize what's— what the bloody hell is going on. Uh, okay. Um, so what do we do? What do we— what do we do? What do we talk about? Now structuring, we, yeah, so build-to-rent, Angela. Well, funny you say that. Yes, I am looking at some clear options right now around some build-to-rent type of stuff. I am. Yep. So I think that's an interesting place. I think it's an interesting thing. So I have some connections, some people I've done some business with before. And, um, so yes is the answer. Yep, there's some stuff I'm looking at. So yeah, look, this is— but if you're already rich before you find, like, wealthy people, all the changes, just be clear, around all the tax on discretionary trust, wealthy people don't give a shit. They're already paying that level of tax. It doesn't matter. It was already there. So they're just gonna funnel everything through companies and stuff, and they'll just restructure things to do it. Like, it doesn't matter to them. Like, it's really gonna hit middle class. That's what it's gonna hit, pure and simple, like every single step of the way. And yeah, Belinda, it's punishing the aspiration, is punishing the aspirational. It's everyday people that actually want to start getting ahead. That's who it's gonna hurt the most, right? That's who it's gonna hurt the most. Most. So now the restructuring is going to be a thing. So we're not gonna be using discretionary trusts anymore. They're kind of dead and buried unless you're in a certain aspect of that and you've got certain beneficiaries, or there's some certain stuff, okay, some certain stuff. So you'll just have to talk to an accountant about that. And you really got to go and do the math behind it, right? So anyone, there's gonna be a lot of restructuring happening, probably primary to help being held in companies. So what that's going to mean is that you're going to have that standard kind of 25% or 30% flat tax rate is what you're going to be looking at. So that's where a lot of the restructuring is going to be happening. They're trying to prompt more people to put more money into superannuation. You guys know how I feel about that. I'm not really going to talk about that too much. They have too much control over it. They change everything way too often. So I'm really not a fan around that. There's a conversation around some offshore stuff. I'm not going to have that right now. When it comes to the asset classes, does it fundamentally change investing in real estate? No, doesn't matter. Still good investment. Would I still invest in it? Yep, absolutely. That may change some of the things that you invest in. Yep, cool. Absolutely. Other than that, who gives a shit, right? It just changes what you invest in. That's all it does. Okay. But anyone who was investing purely for negative tax benefits, that's stupid investing in my eyes. It's just a handy benefit over a good portfolio. So it can be useful for a period. The people that are gonna get smashed the most are high-income individuals. So you see a lot of doctors and things like that that earn really high incomes. They're going to get because they were using negative gearing because that was really their only lever that they could pull when you're on PAYG in a really high income. That was really the only lever they could pull. So that's gone, but it's only for newer real estate now. So that just means it's going to change towards— there's going to be a big flood towards newer real estate for certain segments of the marketplace. That's what's going to happen. So then you just go and invest accordingly, right? So nothing's fundamentally changing. That's still the same. Uh, in the world of shares, I'm finding the right companies and things like that. Nothing's really changed around that. Like, it just means that, are you going to be trading in and out of real estate? Are you on old real estate? Probably not. Are you going to be trading in and out of, um, like negative gearing old real estate? Probably not, unless you've just got enough cash when you're holding it for a long time, or you held it in an entity anyway. You're not going to get the negative gearing benefit in any case. So it's just kind of business as usual for a lot of these things. Yeah, flipping houses, like that potentially changes, but you know, like the capital gains tax reduction after 12 months, like that's some of the big stuff which is going to shift and that's going to change and that's going to have a big impact. Yeah, old property is going to end up decrepit. Well, look, my perspective is it's really just going to Held by investors. It makes no difference. The majority of Australia is owner-occupied, held, right? That's the majority of Australia. It's not owned by investors. It's owner-occupied, held. They're still going to renovate their real estate. It still adds value, still does all of that. So it may happen to certain subsegments of the marketplace. I don't think it's going to really fundamentally have a big change on that because most of it's just Australian real estate, right? Like Australian homeowners. So team, like in terms of investing, guys, it's business as usual. What you need to be concerned about and what you need to be thinking about is how you're structuring yourself and if you're just going to continue operating in a in a standard PAYG type of job where you have no control over anything and operating in the standard type of way that everybody else does because that's where you're gonna get smashed, right? You're gonna get annihilated, right? And this has been coming for a while and it's gonna keep happening. So this is where I keep talking about it. It's all about optionality. That's what it's all talking about. How are you gonna set yourself up where you're so wealthy and you're so secure, you got so much finances that all these changes do not matter because you have options up your sleeve? And this is what I talk about, this whole thing of financial sovereignty, right? Where you are in control of your decisions, control of your future, control of your choices, control of your privacy. Like, that's what needs to happen because there is a systematic creep on your liberties and privacy. It's been coming for a while. None of this is new. They are just accelerating the control mechanisms that they've been applying for quite a period of time. And it's really about financial slavery, team. And I'm always mindful about putting my tinfoil hat on, but like, this is kind of what's going on, right? It's not all you have to look at what's going on, like, what's life like for most people? And it's a struggle. It is a struggle. Cost of living has gone up like crazy. They're now making it harder to operate in day-to-day life, like they're squeezing on every single thing and they've cast the net and they're pulling the net in. That's what's going on right now. And unfortunately, I think it's going towards the whole thing of own nothing, be happy, rent everything, lifetime renter, rent your washing machine, rent your car, rent your iron, rent everything. Get like food rations. Like, that's unfortunately, that's where I think a bunch of this is going. And don't think, yeah, and be too busy and too stressed and too distracted to actually think about anything or consider, hang on a moment, this might be wrong, right? What is going on and what are we gonna do about it? So now the other thing to consider is what, back to what you said, Donna Rose. Start complaining. Start complaining about it and make noise. Like, there is noise being made at the moment all around some of these things, and there are certain senators and there are certain political parties and stuff who are collecting names, collecting, like, They're collecting data around this. Join in, make some noise, pure and simple. And George, fundamentally what you said is true. You can either accept it and get steamrolled or find some other ways. That's all there is to it. So the wealthy get creative, right? The poor just accept it and they just go, that's just the way it is, and feel sorry for themselves. So, okay, take your day to feel sorry for yourself, then get over it and get on with it, right? And so that's what we need to just focus on doing. is just go and focus on what you're building for the future. And so that all this stuff that happens isn't gonna impact you at such a level. Now, I understand that's sometimes easier said than to be done. And Rome wasn't built in a day and neither is your portfolio and neither is your wealth sovereignty. And that's why you've gotta get on with it and get doing it. Doing nothing is the worst decision you can make and the riskiest decision. So yeah, future brainstorming, Lisa. I need— I probably want to do it overseas somewhere, quite frankly. I'll be careful what I say. Island building. Yeah, yeah, yeah. Team, I hope that's been useful. Really, I just want to give you guys the key things of anything that's going to impact investors. Now, is there anything else that I've missed that you guys want to chew around? Yeah, I'm planning at the moment, Dave. I'm planning at the moment, Dave. I haven't got the date locked in. It will be 100% this year, but I haven't got it locked in. I'm navigating a whole lot of stuff in terms of family logistics and stuff. Yeah, any unknown territories wouldn't claim. Yeah, Jet, I've got buddies who are Looking at this stuff, right? We'll all become kings of an area, right? In Queens. Yeah, next in person, we hand in our phones and Todd can put a tinfoil hat on. Yeah, it's growing bigger. You should hear me talk about stuff to my father. He doesn't— I picked him up from the airport the other day to give him a ride back home and, yep, he's going, oh geez, Todd, your tinfoil hat has gotten bigger. Yeah, cool. All right guys, I hope that's been useful. Let me know your thoughts on it all. And I'm going to make this replay available that if you want to share it to people, you're welcome to. And yeah, look, I think so, Anita. Like, it's going to be more newer properties is fundamentally going to be it. But it's not just any old new property. Like, When you're choosing real estate, you're choosing desirability is what you're doing. Talk about the children learning money. Probably not. Probably not. I'm happy to talk about another time. Probably not now, Catherine. Don't really have time. But you need to be teaching your kids. You need to be teaching your kids. There wasn't one last week, mate. I was flying. Jet, I'm actively looking in Malaysia, buddy. Yeah, Malaysia interests me. So does Vietnam. There's a few countries I'm looking at for investment opportunities. Yeah. Cool, guys. Appreciate you. Oh, Catherine, I completely agree. Schools aren't teaching any of this stuff. Like nothing. Like my, my daughter is She's doing a trade next year for grade 10. So I chose her school specifically because she can do a trade in there as well. And I'm just gonna get her to, we're talking about her just coming apprenticeship with mine and Narissa's business. That's what we're focusing on doing. Yeah, you get told off. You go, Nico. You get told off for actually teaching real life skills. What a concept. Yeah. Yeah, it's, it's so needed, Jet. Seriously, it's so needed. Like, people need to know this stuff. Like, yeah, I've got a lot to say about it, as you know. Alright, team, I gotta bounce. I gotta go take care of family. Hope it's been useful. And if you want the recording, we will get a copy of this up in the portal. For those of you, the guests tonight, because I just opened up this up to everybody just because I think you guys need to know what's going on here. I hope that's been useful for you, and I am gonna make this available to people that and get it up on YouTube and stuff because I personally, I think people need to know this stuff. I think it's really critical. Alright, everyone. Thanks so much. Appreciate you. Ciao.