Tag: Negative Gearing

Daily News Round Up – 22 May 2026

Very local, state, national and the wider world, in everyday language, for people who haven’t got all day.

From a fired-up Kiama Council saying no to amalgamation, to jobs slipping and the Iran war keeping petrol dear, here’s the local-to-global wrap for 22 May 2026.

Very Local: what our Council got up to this week

A busy night at the Kiama Council meeting on Tuesday 19 May. Here are the bits that caught my attention.

“No to amalgamation.” The big one. Councillors voted unanimously to reaffirm Kiama as a “strong, proud and independent council” and say a flat no to any merger. The clever part: they’re writing to the sitting member for Kiama and every declared candidate for the 2027 state election, asking each one to put their position on amalgamation in writing so it can be tabled in public. Everyone on the record before the next election. Watch this space.

Money is the cloud over everything. Behind the scenes sat a finance and governance improvement plan, a budget review, and a note about Council’s Performance Improvement Order, which is the state government’s “lift your game” notice hanging over Kiama. That pressure is the real reason the amalgamation fight matters. A small council is scrapping to prove it can stand on its own two feet.

Youth services under a question mark. The Mayor tabled a letter from federal MP Fiona Phillips flagging the possible closure of Council’s SENTRAL Youth Services. The Assistant Minister’s reply says headspace Kiama and others can pick up the slack. Reassuring on paper, but if you’ve got teenagers it’s a sign local youth services may be on the chopping block as budgets tighten.

More homes for Gerringong. Two greenlights worth noting: two residential flat buildings approved at 104 Belinda Street, and 48 Campbell Street set up as an “Urban Release Area,” which is planning-speak for land rezoned for new housing. Housing supply is the thread tying the whole region together right now.

A Jamberoo house off to the lawyers. A dwelling and farm shed on Minnamurra Lane got messy. Councillors split four-all and the item was carried on the chair’s casting vote, deferring it for legal advice first. It’s back in June. A tied vote tells you it’s genuinely contested.

Skate park families, take note. Council backed Option 3 for the Kiama Sports Complex. The promise to find a new and better skate park site got softened to simply relocating it “as per the revised plan.” Keep an eye on where it actually finds a home.

Looking after the locals with fur and roots. In-principle support for the “Save the Greater Glider” campaign and a possible expansion of Seven Mile Beach National Park, plus a long-term plan to tackle the asparagus weed choking the Werri Beach dunes.

The bottom line: it all comes back to money. The improvement order, the budget reviews, the stand against amalgamation, and the worry over youth services are really one story. A small council fighting to stay its own boss while the dollars get tighter. The homes, the gliders, the skate park are all happening on top of that.

Across NSW (State)

Cost of living is still the song that never ends. Sydney’s hung onto its title as the dearest city in the land, and the jobs picture just took a knock too (more on that under Federal). The one bit of breathing room remains rents, which after years of brutal rises have finally levelled off, though nobody’s exactly celebrating at the checkout.

And tonight the city goes a bit magic. Vivid Sydney switches on this evening and runs every night until 13 June, lights glowing from 6pm to 11pm. There’s a 6.5km walk of light displays from Circular Quay through The Rocks, Barangaroo and Darling Harbour, and the drone shows are back, though they’ve shuffled over to Cockle Bay this year. It’s free to wander and look, which is the main thing in a year when everything else costs the earth. Rug up if you go. It’s proper winter now.

Across the Country (Federal)

Jobs took a hit. Today’s big home-front number. The unemployment rate jumped to 4.5% in April, the worst it’s been since late 2021. About 33,000 more people found themselves out of work, and nearly 19,000 jobs actually disappeared over the month. It hit young people hardest (youth unemployment is now over 11%), and this month the losses landed mainly on women, who drove the whole fall in employment while the men’s rate held. This means work is getting harder to find, and that’s the kind of thing that worries a household before it ever worries a politician. Oddly, the share market had one of its best days in weeks on the very same day. A reminder that what’s good for the big end of town and what’s good for your kitchen table aren’t always the same story.

The Budget shake-up, still rumbling on. You’ll remember Treasurer Jim Chalmers handed down his big-swing Budget on 12 May. The headline change for ordinary folk: the government wants to limit negative gearing to new builds from July 2027, and change capital gains tax so it’s tied to inflation with a minimum tax on profits. If you already own an investment property, or had one under contract before 7:30pm on Budget night, you’re left alone. The idea is to give first-home buyers a fairer shot, and they reckon it could help around 75,000 people into a home over a decade. The Opposition’s dead against it.

And here’s where Michael West earns his cuppa. While the big mastheads chase the Budget headlines, the independents are digging where it’s uncomfortable. Two beauties this week from Michael West Media. First, a coal miner versus the Big Australian: BHP, a $300 billion giant, is taking Michael West Media itself to the Federal Court to try and shut down its reporting on an injured coal miner’s wage-theft case. They tried to rush through urgent orders to pull the stories down, and the court told them to wait their turn. The fact they’re being sued and still publishing the file number tells you what kind of outfit they are. Second, Cricket Australia is running an “independent review” into a $600,000 cloud-computing deal at the centre of “contracts-for-mates” allegations, but the whistleblower who raised the alarm has already been made redundant. Exactly the sort of follow-the-money stuff worth your support if you’ve got a spare dollar. Their whole model is “don’t pay so you can read it, pay so everyone can.”

Around the World (International)

The Iran war is still the one that reaches your petrol pump. The US-and-Israel war with Iran has been grinding on since late February, and a shaky ceasefire brokered by Pakistan keeps wobbling on and off. The latest worry is that US intelligence reckons Iran is rebuilding its military faster than expected and has already restarted making drones during the truce. Pakistan’s army chief has flown to Tehran to keep the talks limping along. The fighting keeps squeezing the Strait of Hormuz, a key oil shipping lane, which is exactly why fuel’s been dear the world over, and why so much of our Budget was built around cushioning petrol prices.

Outrage over the Gaza flotilla. This one’s moved fast. Aid activists who’d tried to sail to Gaza were intercepted by Israeli forces, and a video posted by a far-right Israeli minister, taunting them while they knelt bound on the ground, sparked a global firestorm. At least ten countries summoned Israeli ambassadors to explain themselves, Australia and New Zealand among them. As of today, Israel has now deported all the activists, sending them home via Turkey, after even Israel’s own PM called the minister’s behaviour out of line.

A nasty Ebola outbreak in Congo. The head of the World Health Organization has raised the alarm about a rare type of Ebola spreading quickly in the Democratic Republic of Congo. One to keep half an eye on.

The bottom line

It all joins up, Betty. A war on the other side of the planet pushes up oil; oil pushes up the petrol in the car and the price of everything trucked to the shops; and that’s why the Budget was built around fuel relief while the jobs market softens at home. Closer in, our little Council is fighting the same fight in miniature, scrapping to stay independent while the dollars tighten. And through it all, the watchdogs like Michael West keep poking at the powerful so the rest of us can see where the money really goes. Not a bad day’s reading over one cup of tea.

A note on Betty and Kevin: Betty grew up in Kiama before life took her to Blacktown. Her brother Kevin still lives in their old home town. Keeping up with what’s happening down the coast is partly nostalgia for the place she came from, but mostly it’s how she and Kevin fill those long phone calls she looks forward to all week. That’s what this Catch Up is really for. Not just the news, but the conversations it keeps alive.

Sources: Kiama Municipal Council minutes, Sydney Morning Herald, ABS, Michael West Media, Al Jazeera, The Conversation, CNN, CBC, and others.

Your House Doesn’t Count (And Other GDP Surprises)

A whole house, and the scale reads zero. That’s the thing about GDP nobody explains: a home going up in value adds nothing to what the country actually produces.

A couple of weeks ago I drove seven hours to hand out how-to-vote cards, then wrote the whole thing up. Quite a few of you read it. This week my big adventure was reading about capital gains tax for forty minutes on a perfectly good weekday because a Michael West Media piece landed in my inbox and I couldn’t help myself.

Every time the New York Times, Michael West Media or The Conversation turns up, I do a deep dive. A very deep dive. So between the seven days at a polling booth and the forty-minute tax binge, I think we can all agree: I need to get a life.

The good news is I’m going out with friends this weekend. Nice wine, good food, great company. Long overdue.

Before I go and remember what conversation with non-economists feels like, here’s the thing that piece explained that finally made GDP make sense to me after years of nodding along and understanding nothing.

The two kinds of “investing”

There are two ways to put your money to work. They look the same. They are not.

You can buy something that already exists, like an established house, and wait for it to go up in value. You end up richer. Good for you. But nothing new got made. The house was already standing. No extra jobs, no extra goods, nothing extra for the country. Your wealth went up and the nation’s output didn’t move an inch.

Or your money can go into a business. The business buys equipment, trains people, makes products, hires staff. That lifts what the country can actually produce. More gets made for every hour worked. That’s productivity, and productivity is the thing that makes wages rise over the years, for everyone, not just the person who put the money in.

So one is a win for you. The other is a win for you that’s also a win for the whole country.

That was the click for me. I’d always heard “investment” and pictured someone buying a rental. Turns out economists barely count that as investment at all. If it isn’t increasing what the country can produce, it’s really just savings wearing a nicer jacket.

Why it matters for the budget

For 25 years Australia poured its money into the first kind. Existing houses. The tax system practically begged us to, with the 50% capital gains discount and negative gearing making an established property the smartest tax play going.

The result is a $12 trillion housing market, nearly four times the value of every company on the stock exchange combined. A mountain of money sitting in houses that just go up in price, instead of in businesses that build things and employ people.

As one financial writer, Harry Chemay, put it in Michael West Media last week, residential land “may appreciate over time, but it does not by itself generate any economic output.” A house going up in value makes the owner richer without the country producing a single thing extra. michaelwest

That’s what the 2026 budget is trying to shift. Nudge the money out of “buy an old house and wait” and into building new homes and backing businesses. Whether it works is a separate question, and the government has done a woeful job explaining any of it, which I got into elsewhere. But the idea underneath is sound, and it’s the first time I’ve properly understood why anyone bothers measuring productivity at all.

If you want the plain-English version of what the budget actually does to your tax, I wrote that for Betty from Blacktown here. The polling booth piece, if you missed it, is here . And the family farms and capital gains argument is here.

Right. Wine.

Albo the Silent Partner – a budget explainer for Betty from Blacktown

Somewhere in Blacktown, Betty is reading the budget papers. Her accountant isn’t answering. Her family’s at work. The Treasurer is on the telly saying “distortions. This post is for her.

G’day Betty.

You rang your accountant. He didn’t ring back. Your daughter’s working two jobs and your son-in-law’s on night shift, so the family WhatsApp is all emojis and no answers. Meanwhile every news bulletin has someone in a suit yelling about “indexation” and “distortions” and you’re left wondering whether the bloke on the telly just took something off you or gave you something, and whether you should be cross about it.

Let me have a crack. No jargon. Promise.

What actually changed on budget night

A week ago, on 12 May, Jim Chalmers handed down the budget. Three things matter for normal people:

One. From July 2027, when someone sells an investment, a rental, some shares, a business, the tax rules change. The old deal was simple: hold it more than a year, only pay tax on half the gain. The new deal: you only pay tax on the bit that beats inflation (the “real” gain), but with a minimum tax rate of 30% on whatever’s left.

Two. Negative gearing, where landlords offset rental losses against their wage, gets limited to new builds only, also from July 2027. If you’ve already got an investment property, nothing changes for you. You’re grandfathered in.

Three. Family trusts get a minimum 30% tax from July 2028. This is the bit that’s upsetting small business owners, because a lot of them run their butcher shop or tradie business through a trust.

What it means for you, Betty

Here’s the thing the government has been hopeless at saying out loud: if you’re a pensioner, the minimum 30% tax on capital gains doesn’t apply to you. Pensioners are exempt. That’s in the budget papers. Nobody’s said it on the 6 o’clock news because it doesn’t fit either side’s story.

If you own your home, your home is not touched. The main residence exemption is untouched. Sell the house, no tax. Same as it ever was.

If you’ve got a bit of super, your super is not touched. The CGT discount inside super funds stays.

If you’ve got a rental you bought years ago, nothing changes for you unless and until you sell, and even then the old rules apply to the gains you’ve already made.

So far, so boring. So why is everyone yelling?

Why everyone’s yelling

Because of the bit that isn’t about Betty. It’s about Betty’s nephew Luke who runs a life-coaching business, or your neighbour’s daughter who started a little software company in her garage. When they eventually sell, the government takes a minimum 30% slice. Small business owners have started making AI memes of Anthony Albanese photoshopped into their shop windows as the “silent partner” the bloke who didn’t do any of the work but turns up on settlement day with his hand out.

That’s the meme. And memes win arguments these days, Betty, whether we like it or not.

Now , the government will tell you there are small business CGT concessions that still let eligible owners halve or even wipe their CGT bill on sale. That’s true. They are real and they are generous. But Jim Chalmers spent a week not saying it loud enough, and Anthony Albanese spent a week saying “we’re returning to the pre-1999 system” as if anyone under 50 remembers what the pre-1999 system felt like.

The bit that should actually worry you

It’s not the policy. It’s the competence.

A week after budget night, Labor’s own backbenchers are telling journalists they can’t explain it. The Prime Minister himself admitted yesterday that the trust changes “will take longer to develop”, which is political code for we announced it before we’d finished designing it. He’s said he’ll bring the CGT legislation to Parliament “in a fortnight.” Everything’s in a fortnight. Nothing’s actually happened yet.

If your accountant won’t ring you back and the Treasurer can’t explain the policy on Insiders, that’s not your fault, Betty. That’s theirs.

What to actually do

  1. Don’t panic-sell anything. The changes don’t start until July 2027. You’ve got over a year. Existing assets are mostly grandfathered.
  2. If you’re a pensioner, breathe out. The minimum tax doesn’t apply to you.
  3. Keep ringing the accountant. When he finally picks up, ask him two questions: does anything I own get caught by the new rules, and if so, when do I need to decide anything? That’s it. Don’t let him bill you for an hour of jargon.
  4. Watch the trust stuff. It’s the bit most likely to change between now and when it’s legislated. If anyone tells you what the final rules are before about September, they’re guessing.

The bottom line

The budget isn’t the disaster the memes suggest, and it isn’t the masterstroke the press releases suggest. For most pensioners and most homeowners, very little changes. For people who own businesses they plan to sell, or who use family trusts, there’s real stuff to work through and the government hasn’t finished working it through itself.

Anthony Albanese has earned his new nickname. He is the silent partner, silent on the bits that would reassure you, silent on the bits that would honestly admit what’s still being figured out. Until he starts talking like a human being instead of a Treasury press release, Betty from Blacktown is going to keep being confused. And so will the rest of the country.

Hang in there. Ring the accountant on Monday. And if he still won’t pick up, ring me.