The plan to remove capital gains tax concessions
A new plan from the Greens Party would see capital gains tax concessions for property sales phased out.
The Greens Party has called for a complete removal of capital gains tax (CGT) concessions from property in order to ease housing affordability.
The Greens yesterday announced their policy, which would see CGT concessions for property sales phased out by 2020, The Sydney Morning Herald has reported. Greens co-deputy leader Senator Scott Ludlam has said the proposal could generate $119.5bn in savings over the next decade, including more than $7bn by 2019.
Currently, homeowners can avoid paying CGT entirely if selling a dwelling considered their main place of residence. Vendors selling an investment property can take advantage of a 50% discount off their CGT liability if they have held the asset for more than 12 months.
The Greens’ proposal, however, would see this 50% discount phased out, reducing concessions by 10% every year for five years. The plan would run parallel to the party’s plan to phase out negative gearing.
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Ludlam said the plan did not just apply to property, but also to all other forms of capital gains, such as art and investments.
“This is because tax on other forms of income, such as weekly earnings and interest on savings, receives no such discount, so we can't see any justification for any part of capital gains to be tax-free," Ludlam said.
For a comprehensive look at current CGT structures, check out our guide to avoiding capital gains tax when selling your property.Learn more about CGT
