What you said about potential changes to negative gearing and Capital Gains Tax in Australia
Potential changes to negative gearing has led to an almighty war of words, with many quick to slam the notion. HAVE YOUR SAY
Opinion
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Labor’s potential negative gearing and capital gains tax changes have sparked a war of words among Aussies, many of whom insist it looms as another giant mess.
Analysis of the nation’s housing investment shows Labor risks upsetting almost a million voters – including in critical must-win marginal electorates – if it rolls back negative gearing and capital gains tax concessions.
Of the more than 969,000 Australians who claim a tax break for their “rental loss”, about 519,000 live in Labor-held electorates, while more than 56,000 are voters in “teal” independent seats, according to analysis of 2021-22 Australian Taxation Office data based on 2022 electorate boundaries.
Anthony Albanese has stopped short of ruling out changes to tax concessions for housing investors after it was confirmed treasury officials are preparing advice on reforms to both negative gearing and capital gains.
The Prime Minister said he had “no plans” to touch the policies, but by leaving the door open in the future he risks electoral backlash across a number of seats Labor must win at the next federal election in order to retain majority government.
The capital gains tax is applied to the profit made when an asset is sold, but a 50 per cent discount on this kicks in if the purchase, usually a house, has been held for 12 months before it is old.
In 2023-24 the estimated foregone tax revenue was $10.92bn, with $5.7bn relating to negative gearing deductions and $5.22bn relating to the capital gains tax discount.
News of any potential changes drew a furious response from readers, with some claiming the Albanese Government is flirting with danger.
Others, however, agreed that changes could be made, while some were sceptical about the whole conversation.
See what you had to say below and join the conversation >>>
WHAT YOU SAID
Warning signs!
Crow
When the Prime Minister begins offloading his own property portfolio we all know change is afoot.
Denise
No mention of the elephant in the room, which is massive increases in migration. Every new migrant is taking a home that could have been available to Australian citizens
James
Please keep gas prices sky high too Labor. You’re so great for the economy – not
Any justice?
The only certainty about labour is that they will take more of your money through taxes! Ask any politician, what services are you proposing to cease or diminish!
Time for change
Jim
It is time to rethink the entire tax system. We are one of the most heavily taxed systems in the world – local, state and federal taxes all take a bite. There are people who are trying to do the responsible thing and save for their own future needs through property investments because they were not able to invest in superannuation.
N
Anyone who thinks people who own multiple homes deserve tax breaks can take a hike. Our kids are being locked out of owning a home because some people own dozens of homes and get massive tax breaks for the privilege. It’s a complete rort.
Emma
I’m a lib voter, but something has to be done for those who have more than say 3 investment properties. Also something has to be done about airbnb. Both of these things have created such a wealth in property and property prices to surge. I don’t know the right answer but it needs to be looked into. Nothing will ever make me vote labour though.
Ditch Albo
KenHectic
We need to get rid of this commo at the next election, make him a laughing stock being a one term dud, making history.
Simon
Albo and Labor cannot be trusted. They are proven LIARS. Always look at what Labor does – not what they say!
Calabrese
Labor’s modus operandi is to keep taxing us into oblivion. It’s why superannuation is always on the table, it’s why in 2019 Shorten wanted to remove imputation credits, and it’s why now Albo wants to remove negative gearing.
They hate the idea of us having money that is far removed from their dirty claws
Jim
These tools won’t get my vote either way
What a joke
Watchdog
Offset by a million migrants all voting Labor for giving them a free run in the world’s greatest country.
Lisa
My Dad would have had a simple word for Albo & Jimbo and this sort of ‘kite flying’ garbage: Gutless.
William
Just typical Labor – punish people that work and save for their future and discourage free enterprise. Of course, it’s OK for Albo to own multiple investment properties all likely funded with discounted loans at the time and his free education that wasn’t subject to HECS
David
You’ve gotta be pretty dumb to think you can fix a critical housing shortage by making it less attractive to build more homes.
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