US EditionChalmers Signals No Tax Changes Now for People Who Already Hold Investments
The changes would target investor tax breaks as economists say rent increases are likely to be modest, not the 30% some industry critics predict.
- On Tuesday, the Labor Government confirmed negative gearing and capital gains tax reforms will be included in the May 12 budget, targeting investor incentives to boost new home construction.
- Earlier this month, Prime Minister Anthony Albanese signaled these changes, describing the budget as focused on "intergenerational equity" to build a modern economic model rather than relying on past frameworks.
- Polling from The Australia Institute shows 50 per cent of Australians approve of reform, while 1.1 million investors use negative gearing, with 71 per cent of deductions claimed by the top 30 per cent of earners.
- Curtin University Economics Professor Rachel ViforJ notes studies suggesting rent increases may range from 0.55 per cent to 4.1 per cent, challenging narratives of supercharged rental costs.
- ACTU secretary Sally McManus urged the Prime Minister to "bite the bullet," warning that failing to act leaves young people unable to own a home and abandons future generations.
14 Articles
14 Articles
Likely changes to property tax breaks could fall flat: major bank
Commonwealth Bank has forecast the impact of potential changes to the capital gains tax (CGT) discount and negative gearing could fall flat for prospective home buyers, with only a "modest" decrease to house prices.In a pre-federal budget analysis, economists from the big four bank, Luke Yeaman and Harry Ottley, said reforming the property tax benefits would only have a modest impact on lowering house prices and increasing productivity.It estim…
Sydney Morning Herald
Chalmers signals no tax changes now for people who already hold investments
Senior ministers are expected to sign off on tax reforms including a reduction in capital gains tax concessions and an overhaul of negative gearing.
Budget CGT plan threatens to hit younger sharemarket investors
Sharemarket investors have found themselves in the firing line as the federal government threatens to launch an all-out assault on wealth creation. The bold move being finalised by the Albanese government to axe the 50 per cent capital gains tax discount in favour of inflation indexation on new investments across every asset class threatens to widen so-called generational inequality. Industry experts warn it’s younger investors that have chased…
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