The Elephant in the Room
The property podcast for the thinking person.

Episodes

Episode 457: Can We Fix Housing Without Killing Wealth Creation?

The proposed capital gains tax changes have been framed as a way to tackle intergenerational inequality and make the property market fairer. But could they create a new set of problems for Australians trying to build wealth?

Chris Brycki, founder and CEO of Stockspot, joins Veronica and Chris to unpack what the government’s modelling may be missing. With Stockspot clients using diversified ETFs to build deposits and investing for long-term goals, Chris explains why the proposed changes could make investment decisions more complicated — and potentially make it harder for younger Australians to build wealth.

We explore the tax treatment of investment gains and losses, why the proposed rules could disproportionately affect small-cap companies and startups, and how they could encourage businesses to pay more dividends rather than reinvest in growth and innovation. Chris also explains how tax considerations could start influencing portfolio rebalancing and investment risk.

The conversation then turns back to property. Could making multiple asset classes less attractive push more money into primary residences, discourage downsizing and undermine housing affordability? And with the transition to the new CGT system approaching, why could valuations on 1 July become critically important?

If you want to understand the behavioural and economic consequences behind the headline CGT changes, this conversation goes well beyond the politics.

Episode Highlights

01:40 – Chris Brycki on the CGT Changes
05:16 – Should You Invest Your House Deposit?
07:53 – Where the Budget Got CGT Reform Wrong
10:14 – The CGT Trap: Gains Indexed, Losses Aren’t
15:08 – Why the New CGT Rules Could Crush Startups
21:25 – Should Capital Gains Be Taxed Like Income?
27:49 – Will CGT Changes Push Companies to Pay Dividends?
33:06 – How the New CGT Rules Affect ETFs
37:19 – When Tax Starts Driving Investment Decisions
43:08 – Could CGT Changes Push Money Back Into Property?
48:52 – Is Negative Gearing Really Only for the Wealthy?
51:44 – Why 1 July Valuations Could Cost You Thousands
55:06 – Could CGT Changes Discourage Downsizing?
58:18 – The Bigger Economic Consequences of CGT Reform

About the Guest

Chris Brycki is the founder and CEO of Stockspot, described as Australia’s first and largest digital investment adviser. Stockspot manages more than $1.5 billion for around 21,000 clients, many of whom are young professionals and families investing through diversified ETFs for goals including buying a home.

Chris brings a direct view of how Australians are actually using investment markets to build wealth. He has been particularly vocal about the proposed CGT changes and their potential impact on investors, entrepreneurs, housing affordability and Australia’s economy.

In this episode, he draws on his experience working with investors to challenge assumptions behind the proposed reforms, including Treasury’s modelling of share-market returns, the treatment of investment losses, and the incentives the new system could create for companies, investors and aspiring homeowners.

Connect with Chris Brycki

Resources:

Visit our website: https://www.theelephantintheroom.com.au

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Chris Bates