Growing debate over the CGT discount removal
The Australian government's proposed plans to overhaul property taxes by potentially axing the capital gains tax (CGT) discount may hurt the very group it is trying to help, experts claim. The changes could impact smaller investors and residential investors trying to build wealth into larger portfolios.
The Albanese Government faces pressure over speculation it will axe the capital gains tax (CGT) discount. Treasurer Jim Chalmers is considering returning to the original way of taxing capital gains on homes instead of reducing the current 50 per cent discount. Experts claim the changes would heavily impact mum and dad-type investors but do little to discourage activity from cashed-up institutional investors. The Finance Brokers Association of Australia says the proposed changes will disadvantage younger Australians and those on lower incomes. The changes could lead to less rental properties, driving up rental prices, which have already risen significantly across Australia. The association believes this will increase the cost of living for renters.
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