Clip Comes Back to Haunt Albo as Treasury Plans to Axe Capital Gains Tax Discount and Negative Gearing
Treasury plans to halve the capital gains tax discount and tighten trust rules as Labor targets housing fairness and younger voters.
- Ahead of next week's federal budget, the Albanese government plans to curb negative gearing, overhaul the CGT discount, and impose new tax rules on trusts, targeting younger Australians amid debate over housing, wealth, and intergenerational fairness.
- Politics surrounding housing policy are more favourable now than they were seven years ago, as millennial and generation Z voters constitute a majority of the electorate, contrasting with Labor's failed 2019 election campaign.
- Nick Haggarty reported that negative gearing will be fully grandfathered, while the CGT discount will likely be halved from 50 per cent to 25 per cent to balance market impacts against revenue generation.
- Treasurer Jim Chalmers downplayed potential revenue gains, citing the "transition" as a key factor, while proposed changes must address the extreme complexity of "nested" trust structures used by high-wealth individuals.
- Economists expect changes to reduce house prices and increase home ownership rates, though the government aims to avoid accusations it has "changed the rules" on those who made investments based on current tax rates.
12 Articles
12 Articles
How do negative gearing, capital gains tax and trusts work?
By economics reporter Tom Crowley A tax shake-up is coming. Next week’s federal budget will include changes to the capital gains tax, negative gearing and the rules for trust funds. All three were part of Labor’s 2019 election campaign. Back then, it argued that the tax concessions were unfair and benefited “the top end of town”. This time, the Albanese government will frame it as a policy to help young people access the housing market. As is a…
Budget to overhaul negative gearing, CGT discount, family trusts
Reports suggest the government is planning to curb negative gearing, overhaul the capital gains tax discount and impose new tax rules on family trusts when Treasurer Jim Chalmers hands down the Federal Budget next week. While nothing has been confirmed, and Treasury has yet to respond to Financial Standard's inquiries, multiple media outlets suggest the changes will be unveiled as the government focuses on Budget reform. When asked about potenti…
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