‘Out the Window’: CGT Fears Intensify
Independent economists told a Senate inquiry the plan would improve tax equity, even as they criticized the proposed 30% minimum on indexed gains.
- A two-day Senate inquiry into Labor's capital gains tax changes began in Canberra on Monday, examining the Treasury Laws Amendment Bill that has passed the House of Representatives.
- Treasurer Jim Chalmers defended the proposed changes on Sunday, arguing they help young Australians buy homes by curbing speculation, while critics accused the government of rushing the process with only 12 days for submissions.
- Hostplus CEO David Elia warned the budget changes risk damaging the broader economy, while independent economist Saul Eslake said there was "scope for improvement" and argued the policy improves tax equity.
- Tech Council members and COSBOA official Skye Cappuccio warned the changes "would disproportionately damage Australia's early-stage innovation economy"; after July 2027, taxpayers face a 30 per cent minimum tax or rates up to 47 per cent.
- The inquiry is due to deliver its final report on June 22, with 150 submissions published; Labor must secure crossbench support in the Senate to pass the legislation before the winter break.
13 Articles
13 Articles
Labor’s capital gains tax blunder
Tax reform doesn’t need to be this difficult. Australia is overtaxed, and we desperately need another round of income tax cuts to lower the cost of living and boost productivity. That should include lower tax rates, higher tax-free threshold, tax bracket indexation, family income splitting, and tax-deductible savings. The one thing it should not include is higher taxes on capital, yet unfortunately that is the centrepiece of the government’s so-…
Economists Offer Cautious Backing for Labor’s Tax Overhaul
Labor’s tax overhaul of wealth creation vehicles has won cautious backing from some economists during a Senate committee examining the new laws. The Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, which has passed the lower house, is being scrutinised by the Senate Economics Legislation Committee. The package was the centrepiece of Treasurer Jim Chalmer’s May budget and includes new restrictions on negative gearing, a new tax on trusts, an…
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