CAPITAL GAINS TAX – AUSTRALIA

Top 10pc gain 80pc of CGT benefits

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Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 22-Jan-18

The percentage of the yearly benefits of the capital gains tax discount that goes to the highest income earners has increased from 70 per cent to 80 per cent over the last 10 years or so, according to the Australian Taxation Office. Danielle Wood from the Grattan Institute says this suggests that the 50 per cent discount on capital gains needs to be modified. The presence of the discount, when combined with negative gearing, is seen by experts as making the leverage of real estate a particularly attractive proposition for investors.

CORPORATES
AUSTRALIAN TAXATION OFFICE, GRATTAN INSTITUTE, AUSTRALIAN LABOR PARTY, AUSTRALIAN HOUSING AND URBAN RESEARCH INSTITUTE

Labor to stick with negative gearing policy

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Original article by Andrew Tillett, Misa Han
The Australian Financial Review – Page: 4 : 9-Jan-18

The Australian Labor Party has argued that a Treasury analysis produced almost two years ago demonstrates that its policy on negative gearing will boost housing affordability. The analysis, which was obtained under Freedom of Information laws, concluded that Labor’s proposed changes to the negative gearing and capital gains tax regimes would have relatively little negative effect on house prices. Shadow treasurer Chris Bowen has indicated that the proposed reforms will be part of Labor’s policy platform at the next federal election.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, PROPERTY COUNCIL OF AUSTRALIA LIMITED

Property group, Xenophon urge CGT reform

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Original article by Michael Bleby
The Australian Financial Review – Page: 5 : 13-Jul-16

The Australian Labor Party estimated that the capital gains tax break on property sales will cost $A8.6bn in lost government revenue by 2019, compared with $A4.2bn in 2014. Senator Nick Xenophon believes that the Federal Government should introduce CGT reforms as part of its strategy to reduce the Budget deficit. The Property Council of Australia supports reducing the CGT concession from 50 per cent at present to 40 per cent, compared with Labor’s proposal to reduce it to 25 per cent.

CORPORATES
AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, PROPERTY COUNCIL OF AUSTRALIA LIMITED, GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, STANDARD AND POOR’S CORPORATION, HSBC AUSTRALIA HOLDINGS PTY LTD

Shorten’s policies ‘to cut house prices’

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Original article by Sid Maher
The Australian – Page: 1 & 8 : 21-Jun-16

Adept Economics has released the results of independent modelling which suggests that house prices would fall by an average of four per cent if the Australian Labor Party’s proposed changes to the negative gearing and capital gains tax regimes are implemented. The modelling also suggests that apartments in inner-city regions could fall be up to five per cent. The report, which was produced on behalf of Walshs Financial Planning, concludes that there are risks associated with the policy, and changes should be made if Labor wins the 2016 federal election.

CORPORATES
ADEPT ECONOMICS, WALSHS FINANCIAL PLANNING PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, GRATTAN INSTITUTE, URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA

Tax home sales over $2m call

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Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 11-Jan-16

The Australia Institute has urged a review of the capital gains tax exemption on family homes, which is expected to cost $A189bn by 2020. This compares with $A46bn in 2015-16. The Australia Institute advocates scrapping the CGT exemption for homes valued at more than $A2m, and modelling suggests that this move could add around $A12bn to the Federal Government’s Budget bottom line over four years. AMP chairman Simon McKeon supports the Australia Institute’s proposal.

CORPORATES
THE AUSTRALIA INSTITUTE LIMITED, AMP LIMITED – ASX AMP, UNIVERSITY OF CANBERRA. NATIONAL CENTRE FOR SOCIAL AND ECONOMIC MODELLING, BUSINESS COUNCIL OF AUSTRALIA

Extra taxes for rich would raise $8b

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Original article by Joanna Mather, Primrose Riordan
The Australian Financial Review – Page: 1 & 4 : 26-Oct-15

Deloitte has released a report which proposes taxing superannuation in the same way that income is taxed. The flat tax rate of 15 per cent for super contributions would be replaced with a progressive tax system whereby low income earners would pay a contributions tax of just six per cent, while those on higher incomes would pay 34 per cent. Deloitte also proposes reducing the capital gains tax discount from 50 per cent to 33 per cent.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Start-ups may avoid all capital gains tax

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Original article by Fleur Anderson
The Australian Financial Review – Page: 1 & 6 : 5-Oct-15

The Parliamentary Budget Office estimates that a proposal to abolish capital gains tax for investing in business start-ups would cost the budget about $A30m annually by 2018-19. A Federal Government taskforce is considering the proposal, which was put forward by backbencher David Coleman and had the support of former treasurer Joe Hockey. The tax break would apply to investments in companies that have been in business for less than two years and whose annual revenue is less than $A1m.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NINEMSN PTY LTD, PUBLISHING AND BROADCASTING LIMITED, STARTUPAUS, KPMG AUSTRALIA PTY LTD

$2.5m super cap gains support

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Original article by Sally Rose
The Australian Financial Review – Page: 6 : 4-Aug-15

There is growing support among superannuation funds for the introduction of a cap on super balances of at least $A2.5 million. The Actuaries Institute expressed support for the cap in its submission to the Australian Government’s tax inquiry, which closed on 31 July 2015. The institute also believes that the transfer of super from the accumulation to retirement phase should trigger capital gains tax liability.

CORPORATES
THE INSTITUTE OF ACTUARIES OF AUSTRALIA, GRATTAN INSTITUTE, BT FINANCIAL GROUP PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, TOWERS WATSON, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN TAXATION OFFICE

Hockey tells states to lift GST income

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 15-Jul-15

The upcoming state and federal leaders’ summit will present an opportunity to pursue intergovernmental reform, according to Treasurer Joe Hockey. He will use a speech on 15 July 2015 to argue for changes to the GST and the transfer of full responsibility for schools and hospitals to the states. Hockey will also call for measures such as the abolition of inefficient state taxes and a reduction in the corporate tax and capital gains tax rates.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, LIBERAL PARTY OF NEW SOUTH WALES, AUSTRALIAN LABOR PARTY

CGT discount too generous: Tony Shepherd

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 23-Jun-15

Australian business leader Tony Shepherd says the capital gains tax (CGT) rate should be increased to the same level as the income tax rate. He has also advocated changes to the CGT discount of 50 per cent and increasing both the rate and scope of the goods and services tax.

CORPORATES
COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, AUSTRALIA. NATIONAL COMMISSION OF AUDIT