Don’t punish ‘have-a-go’ Aussies by cutting CGT concessions: Abbott

EXCLUSIVE: Former Prime Minister Tony Abbott says Malcolm Turnbull and Scott Morrison should not punish Aussies who “have a go” by cutting capital gains tax concessions.

FORMER Prime Minister Tony Abbott says Malcolm Turnbull and Scott Morrison should not punish Aussies who “have a go” by cutting capital gains tax concessions.

Ahead of Federal Budget in four weeks time, Mr Abbott has put pressure on the Turnbull Government leadership team to rule out any policy changes that will hurt Australians, describing them as “covert tax increases.”

“I’d be dismayed if the budget contained overt or covert tax increases,” he said.

Capital gains concerns... Tony Abbott

“It’s good that the Treasurer has ruled out changes to negative gearing but he should rule out changing capital gains tax and resource rent tax too because we shouldn’t be in the business of punishing people who have a go.”

As the Turnbull Government senior leadership team discuss whether to allow first homebuyers to access their superannuation for a house deposit, Mr. Abbott indicated he supported the move, which has been condemned by former Prime Minister Paul Keating, who introduced superannuation.

“Superannuation is the people’s money not the government’s,” he said.

“Why shouldn’t people be able to spend their money on housing now rather than on retirement in 30 or 40 years’ time?

“Along with measures to ease demand, giving homebuyers access to their super would help re-weight the odds in their favour.”

Prime Minister Malcolm Turnbull in India yesterday.

The Turnbull Government has indicated measures to address housing affordability will be the centrepiece of its May budget.

But, behind-the-scenes, there has been deep division on how precisely to tackle the issue of younger Australians no longer being able to afford to own their own home.

Currently, capital gains tax and superannuation for housing deposits are being discussed.

Mr Abbott’s first budget was by several economists as being the toughest in almost a decade, with spending cuts designed address a “budget emergency” of rising debt and deficit levels.

Mr Abbott says Scott Morrison should not punish Aussies who “have a go”.

While taking tough but unpopular decisions, Mr Abbott faced accusations from social welfare advocacy groups that the budget measures would hit low and middle-income households the hardest.

He has since acknowledged some mistakes in that Budget.However, he has also argued that the budget was needed to address a serious deficit crisis without increasing taxes.

That budget forecast a surplus in 2023-24, but gross debt has since increased from around $257 billion in 2013 to $474bn earlier this year.