Capital gains tax changes could still hit investors

Adam Smith 20 February 2017 NEWS

tax implications of opening a kids’ bank account (1)The government may still be considering changes to capital gains tax, in spite of Prime Minister Malcolm Turnbull’s insistence last week that increases were off the table.

Turnbull last week argued that the government had no plans to make changes to capital gains tax concessions for property investors, but a Liberal backbencher has claimed changes to the concession may still be considered, the Australian has reported.

Liberal MP John Alexander told Sky News the government would still consider changes to the concession as a means of addressing housing affordability.

“When our Prime Minister says ‘we have no plans’, that is correct. Are we working on plans? Yes we are. Are there those in our party who are promoting that as another issue that could be addressed, could be modified, could be calibrated? I think the answer is yes,” Alexander told Sky News.

According to the Australian, Treasurer Scott Morrison is exploring options to address housing affordability. Morrison is set to unveil a major housing affordability package in the May budget, the Australian reported.

Avoid CGT when selling a property

Assistant Minister to the Treasurer Michael Sukkar would not rule out changes to CGT as part of this package, the Australian said.

“The basic point to make is we as a government have sought not to increase taxes. We think that increasing taxes on investment inevitably leads to less investment. Having said that, there are many ideas that are in the embryonic stage as we speak, and we’re many months away from the budget,” Sukkar told Sky News.

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