With the federal election getting closer every day, let’s take a look at some of the housing and finance related changes currently on the table.
Capital gains tax
If they win, Labor will halve the capital gains discount for all assets purchased before a date (yet to be determined). This will reduce the capital gains tax discount for assets held longer than 12 months from the current 50% to 25%. However small business assets and investments by super funds will be excluded.
Negative gearing
This is a hot topic, that will no doubt hit the headlines again closer to May. With negative gearing you can deduct expenses, for example; mortgage, insurance, repairs etc. from what you make in rent, to pay less income tax. Labor will only allow this for new dwellings.
If Labour wins the May federal election, it will introduce its changes to negative gearing and capital gains tax on January 1 next year. 
Brokers commission
Both major parties have indicated that they do not want to introduce an upfront fee-for-service paid by the customer. This was a recommendation from the Royal Commission. I currently earn an upfront fee and trailing commission, which is paid by the lender who funds the loan, but this may change to just an upfront fee (paid by the lender). If you’re interested in understanding what exactly trail is and what brokers do to earn it, read my story here.
I make it my job to be across all this stuff so I can keep you informed. Get in touch if you have questions.