Mark Forte from Wilson Pateras explains Labors proposed changes to Capital Gains Tax.
Changes to Capital Gains Trusts
- Proposed Policy – Taxable Capital Gain reduced by 25% (Currently 50%)
- Applied to assets owned by individuals and trusts
Why the change in Capital Gains Tax?
- To increase housing affordability
- Investors use the 50% Discount and Negative Gearing to gain an unfair advantage in competing for property over owner occupiers
- Labor argues investment subsidies skewed towards high income earners
Exemptions on Proposed Changes
- Grandfathered Investments
- Investments by SMSFs
- Assets of Small Business Owners
For a more thorough analysis, watch the video below.
