CAPITAL GAINS TAX – AUSTRALIA

Scramble for super CGT clarity

roymorgansocial Leave a comment

Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 15-Oct-25

The federal government’s decision to abandon a proposal to tax the unrealised capital gains of large superannuation accounts has been welcomed by financial advisers. The government will now only tax the realised capital gains of super accounts with balances of more than $3m, with the tax rate to be doubled to 30 per cent; super accounts with more than $10m will be taxed at 40 per cent. The reforms are slated to take effect from mid-2026, but financial advisers and their clients want Treasurer Jim Chalmers to clarify whether the higher tax rates will apply to gains that are accrued before this date.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Capital gains tax reform needed to address inequality

roymorgansocial Leave a comment

Original article by Michael Bleby
The Australian Financial Review – Page: 25 : 27-Aug-25

The National Housing Supply & Affordability Council’s chair Susan Lloyd-Hurwitz was one of the participants in the federal government’s economic reform roundtable. She contends that a "very large conversation" is needed with regard to intergenerational inequity and intra-generational inequality; Lloyd-Hurwitz adds that any such discussion must include changes to the capital gains tax regime for investment properties, in order to address the issue of housing inequality. Lloyd-Hurwitz is the former CEO of listed property developer Mirvac Group.

CORPORATES
AUSTRALIA. NATIONAL HOUSING SUPPLY AND AFFORDABILITY COUNCIL, MIRVAC GROUP – ASX MGR

Unease stirs inside Labor on super tax

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 14-May-25

Treasurer Jim Chalmers has confirmed that the federal government intends to proceed with legislation to double the tax rate on superannuation balances exceeding $3m and introduce a tax on unrealised capital gains. Some Labor MPs have expressed concern about the proposed superannuation tax changes, noting that the reforms had generated a lot of negative feedback at polling booths on election day. Independent MP Allegra Spender says that although Labor now has a mandate for superannuation tax reform. she contends that it is "bad policy" and should be reconsidered.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Negative gearing in Labor’s sights as Albanese readies for election battle

roymorgansocial Leave a comment

Original article by James Massola, David Crowe
The Age – Page: Online : 25-Sep-24

Several federal government sources have confirmed that Labor is considering potential changes to the negative gearing regime ahead of the upcoming election. One of the government officials has indicated that the Treasury has been asked to undertake modelling on possible reform options. Treasury is not believed to be considering the changes to the negative gearing and capital gains tax regimes that former Labor leader Bill Shorten took to the 2016 and 2019 elections.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

‘Bad enough now’: Property investor tax breaks soaring to $22 billion a year by 2035

roymorgansocial Leave a comment

Original article by Matthew Elmas
The New Daily – Page: Online : 2-Jul-24

Parliamentary Budget Office data has revealed that property investors received $85 billion in tax breaks over the decade between 2014-15 and 2023-24. The PBO also found that the cost of negative gearing and capital gains discounts will jump to $165 billion over the next decade, with tax breaks to property investors to be worth $22 billion a year by 20235. Australia Institute senior research fellow David Richardson claims that property tax breaks will continue to push up property prices, with Richardson noting things are "bad enough now; he notes the cost of a median house in Sydney is around 13.5 times annual average weekly earnings.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, THE AUSTRALIA INSTITUTE LIMITED

Albanese slaps down Greens over juvenile negative gearing demand

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 13-Feb-24

Prime Minister Anthony Albanese has ruled out making changes to the negative gearing regime and the capital gains tax discount in order to secure the Greens’ support for its Help To Buy shared equity scheme for first-home buyers. Albanese says the federal government will not be open to negotiation, and he has criticised the Greens’ "juvenile approach" to the issue of negative gearing. The government was previously forced to make concessions in 2023 to secure the Greens’ support for its Housing Australia Future Fund. The Opposition intends to vote against the shared equity scheme.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS

Labor may revive negative gearing

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 8 : 27-Nov-19

Shadow housing minister Jason Clare has warned that the housing affordability crisis has not eased since Labor lost the 18 May election, adding that it may get worse. He has raised the prospect that Labor could go into the next federal election with a modified version of its proposed changes to the capital gains and negative gearing regimes that were rejected by voters in May.

CORPORATES
AUSTRALIAN LABOR PARTY, MASTER BUILDERS AUSTRALIA INCORPORATED

Negative gearing a $1.5bn turn-off

roymorgansocial Leave a comment

Original article by Olivia Caisley
The Australian – Page: 4 : 1-Aug-19

Research undertaken by Deloitte Access Economics on behalf of the Property Council of Australia suggests that Labor’s proposed negative gearing reforms would have slashed the nation’s GDP by about $1.5bn. It is also estimated that the policy would have resulted in the loss of 7,800 construction industry jobs and cost the sector around $766m. A separate survey of voters in 16 marginal electorates has found that 34 per cent indicated that Labor’s negative gearing and capital gains tax reforms were a key reason why they did not vote for the party at the 18 May election.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Bouris calling with a warning about Labor

roymorgansocial Leave a comment

Original article by Simon Benson
The Australian – Page: 8 : 17-May-19

Wizard Home Loans founder Mark Bouris has attracted scrutiny from the Australian Electoral Commission for targeting voters via a robo-calling campaign. Bouris, who is not a candidate in the federal election, used automated phone calling technology to contact 200,000 households in marginal electorates. He warned that Labor’s proposed negative gearing and capital gains tax reforms would see house prices fall. Bouris has stressed that he was not acting on behalf of any political party.

CORPORATES
AUSTRALIAN ELECTORAL COMMISSION, AUSTRALIAN LABOR PARTY, WIZARD HOME LOANS, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, LIBERAL PARTY OF AUSTRALIA

Property taxes will hit safe Labor seats

roymorgansocial Leave a comment

Original article by Duncan Hughes
The Australian Financial Review – Page: 11 : 10-May-19

The Real Estate Institute of New South Wales has urged Labor to reconsider its proposed negative gearing and capital gains tax reforms. CEO Tim McKibbin says most of the 50 suburbs across Sydney that will be hardest-hit by the reforms are in Labor-held electorates. The median values of rental properties in some of these suburbs have fallen sharply in the last year, and the REISW warns that Labor’s reforms could result in a further decline.

CORPORATES
THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES, AUSTRALIAN LABOR PARTY, HERRON TODD WHITE AUSTRALIA PTY LTD