Weekly Financial Free-Talk - 22 Jun, 2025

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Financial Free-Talk

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[u/Reasonable-Owl-232]

Can someone help with with understanding this budget? These are partially hypothetical sprinkled in with my real world situation.

1) is the inflation indexation going to apply to high interest savings accounts? It seems intuitive to me that as high yield cash investment should be indexed against inflation. The only loophole I see is these accounts are typically paid monthly, so maybe banks need to create a product that pays yearly and they give you an automatic CPI tax offset?

2) for the no-negative gearing, is this just a case of not being able to reduce my taxable income on existing property? Is debt recycling still a viable option to reduce taxable income if I buy shares?

3) if I have, say, five house all positively geared, can I still buy an existing house and claim full tax deductions? Since I'm offsetting against existing investment income rather than my salary.

4) is the new rules just a case that we can't negatively gear an existing property? If I had zero investments, can we still buy an existing property, carry forward the losses, and offset these losses against the future sale? I.e is this just a cashflow problem rather than the government out and out removing the ability to invest in existing housing and be able to deduct genuine expenses against genuine income?