CAPITAL GAINS TAX – GOVERNMENT POLICY – AUSTRALIA

PM leaves door ajar to super tax compromise

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Original article by Greg Brown, Matthew Cranston
The Australian – Page: 1 & 4 : 4-Jun-25

The federal government will require the support of either the Coalition or the Greens to pass legislation in the Senate from 1 July. Prime Minister Anthony Albanese has given indications that Labor may be willing to make changes to its superannuation tax reforms to secure the Coalition’s support for the legislation. Shadow treasurer Ted O’Brien recently stated that the Coalition would consider a deal with Labor if it agreed to abandon plans to tax the unrealised capital gains of super funds. Australian Chamber of Commerce & Industry CEO Andrew McKellar says the business community would welcome greater co-operation between the major political parties if it results in policy outcomes that are in the national interest.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Stokes slams ALP’s super tax hit

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Original article by Perry Williams, Jared Lynch, David Ross
The Australian – Page: 13 & 15 : 7-May-25

SGH Limited’s CEO Ryan Stokes has criticised the federal government’s proposal to tax the unrealised capital gains of superannuation funds. Stoke contends that while taxing profits is "entirely reasonable", taxing unrealised capital gains is dangerous and sets a far-reaching and concerning precedent, while it could also distort markets. The tax would initially apply to super accounts with a balance of more than $3m, but Stokes warns that it could potentially be extended to other asset classes. The Greens have advocated lowering the threshold to $2m, while the fact that the tax will not be indexed to inflations means that it will progressively apply to more people.

CORPORATES
SGH LIMITED – ASX SGH, AUSTRALIAN GREENS

Tax warning for 130,000: Labor out to get you

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Original article by Matthew Cranston
The Australian – Page: 6 : 29-Apr-25

The federal government is continuing to attract scrutiny over its plans to tax the unrealised capital gains of superannuation funds. Shadow treasurer Angus Taylor says Labor is "coming after superannuation", despite stating prior to the 2022 election that it did not plan to do so; he adds that the policy will particularly affect people such as farmers and small business owners. However, Treasurer Jim Chalmers says it is only a "modest change" that will affect a small number of people with more than $3m in their superannuation fund. Meanwhile, Wilson Asset Management chairman Geoff Wilson has expressed concern about the policy in a letter to the firm’s 130,000 investors.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, WILSON ASSET MANAGEMENT

Tax rules in limbo leave expats on a knife-edge

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Original article by Ingrid Fuary-Wagner, Tom McIlroy
The Australian Financial Review – Page: 6 : 25-Feb-19

The federal government announced in the May 2017 Budget that it would remove a capital gains tax exemption for non-resident Australians who sell their main home while overseas. The government has given non-resident Australians until 30 June to sell their home under existing rules, although legislation to enact the measure is yet to pass into law, while Labor has indicated that it may amend the measures if it wins the 2019 election. Expatriates are in a dilemma, not knowing whether the new laws will come into effect, but many are selling their property anyway, at a time when the housing market is in decline.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, SOTHEBY’S AUSTRALIA PTY LTD

Expats urge rethink of draconian CGT plan

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Original article by Tom McIlroy, Michael Smith
The Australian Financial Review – Page: 4 : 4-Oct-18

Tax experts are concerned about the federal government’s proposal to abolish the capital gains tax exemption for expatriates who sell their main residence in Australia. They have warned that the proposed reforms could potentially apply retrospectively from 1985, when CGT was introduced. Shadow treasurer Chris Bowen has also expressed concern about the "unintended consequences" of the proposed reforms, which were announced in the May 2017 Budget as part of the government’s strategy to address the issue of housing affordability.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, CENTRE ALLIANCE, ST JAMES’S PLACE WEALTH MANAGEMENT, KING AND WOOD MALLESONS, THE HONG KONG GENERAL CHAMBER OF COMMERCE

Morrison cools on tinkering with CGT

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Original article by Laura Tingle, James Eyers, Su-Lin Tan
The Australian Financial Review – Page: 6 : 11-Apr-17

Treasurer Scott Morrison says the Federal Government supports regulatory moves aimed at curbing interest-only mortgage loans. Morrison says such measures should help ease housing prices and reduce high levels of household debt. His comments suggest that he is not looking at changes to capital gains tax. Morrison says it is important to ensure that returns from rental property do not become too unattractive, as this would deter "mum and dad investors".

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Cabinet digs in as PM backflips on CGT

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 24-Feb-16

Prime Minister Malcolm Turnbull has told Parliament that changes to the 33 per cent capital gains tax discount on the sale of superannuation funds’ assets may be part of the Federal Government’s tax reform agenda. He had previously given indications that CGT reforms had been ruled out, but claims that he was specifically referring to the Opposition’s CGT proposals. Meanwhile, cabinet ministers have agreed to wait until the May 2016 Budget to announce the Coalition’s tax policies.

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

Turnbull: no change to capital gains tax

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Original article by Sid Maher
The Australian – Page: 1 & 4 : 23-Feb-16

The Australian Government’s options for tax reform have become more limited after Prime Minister Malcolm Turnbull told Parliament that changes to the capital gains tax regime are not on its agenda. Turnbull warned that the Opposition’s proposed capital gains tax reforms will deter investment in Australia, while its policy on negative gearing would adversely affect house prices. Changes to superannuation tax concessions and tax deductions for work-related expenses are among the few tax reform options that are still available to the Government.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, BUSINESS COUNCIL OF AUSTRALIA, BLUESCOPE STEEL LIMITED – ASX BSL, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA. DEPT OF THE TREASURY, NEWSPOLL

Turnbull’s bright idea: $1bn to drive innovation

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Original article by Philip Hudson, Sid Maher
The Australian – Page: 1 & 2 : 7-Dec-15

A capital gains tax exemption for investors in business start-ups will be included in the Australian Government’s innovation and science statement, which will be launched on 7 December 2015. Meanwhile, a new cabinet committee will be responsible for co-ordinating the government’s expenditure on research and science, while the CSIRO will receive around $A100m in additional funding. The package is also believed to include measures aimed at encouraging more people to study sciences, technology, ­engineering and mathematics.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CSIRO, DATA61, NATIONAL ICT AUSTRALIA LIMITED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, OZEMAIL LIMITED, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, SCIENCE AND TECHNOLOGY AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA