Election 2022: Liberals capitalise on Zoe Daniel’s tax policy

The Liberal Party has accused Zoe Daniel of proposing tax reforms that could cost Goldstein residents selling their family home more than $400,000.

Goldstein independent candidate Zoe Daniel. Picture: NCA NewsWire / Ian Currie

The Liberal Party has seized on teal independent Zoe Daniel’s tax policy, claiming her call for a ­review of capital gains tax exemptions on the family home would lead to their abolition, costing residents of the bayside Melbourne seat of Goldstein more than $400,000 if they sold their houses.

Ms Daniel’s policy, outlined on her website, states that she views CGT exemptions on the family home as a “distortion” of the tax system, and wants them reviewed.

Asked about her policy, the Climate 200-backed candidate said she was “not advocating any change to capital gains tax, and to characterise anything I’ve said as such would be a lie”.

“Advocating for a good-faith review requires exactly that, good faith to find things out rather than prejudging any outcome or recommendation, which I am not,” Ms Daniel said.

The former ABC journalist is seeking to topple Assistant Minister for Industry, Energy and Emissions Reduction Tim Wilson in his previously safe seat.

Analysis supplied to The Australian by the Liberal campaign shows the abolition of CGT ­exemptions on the family home would cost median homeowners in the Goldstein suburb of Hampton $411,000, and in nearby Highett $270,000. This estimate is based on realestate.com.au ­median house prices of $2,147,500 and $1,585,500 in Hampton and Highett respectively.

Median 2012 prices have then been calculated by deflating current prices by the Melbourne residential property price index, which is 183.9 in 2022 and 99.4 in 2012, resulting in $1,306,686 for Hampton and $856,980 for Highett respectively. The difference between the 2022 and 2012 ­median house prices of $1,110,814 in Hampton and $728,520 in Highett reflects a typical capital gain in house prices in those suburbs over the decade.

If the CGT owner-occupier exemption was removed, tax on the capital gain of owner-occupier homes would be payable at taxpayers’ marginal individual income tax rate. This is assumed to be the 37 per cent rate, which applies to individuals with incomes of between $120,001 and $180,000.

The Liberals last week accused Ms Daniel of proposing land taxes that would cost homeowners in Goldstein an average of almost $10,000 a year.

Victorian senator Jane Hume said it was “clear that a vote for Zoe Daniel risks massive taxes on your family home”.

“A vote for anti-Liberal, so-called independents is a vote for chaos. Zoe isn’t safe,” Senator Hume said. “Voters can trust that only Tim Wilson and the Liberal Party will build a stronger economy for a stronger future.”