Australian Politics Forum - Axing CGT concessions on the family home

Redmond Neck

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Re: Axing CGT concessions on the family home
Reply #45 - Jan 13^th, 2016 at 7:39am

Sir lastnail wrote on Jan 12^th, 2016 at 1:05pm:

If you allow tax deductions on interest payments for the family home then that would level the playing field somewhat.

They would have difficulty establishing what CG one made as in my case the house and land cost about $22000 in 1972. It certainly isnt in the $2,000,000 range but some in Sydney would be with similar original cost.

Since then it has had a major extension and garages added twice

What deductions would be allowed if any?

Interest ? Well all of the above were paid off years ago and I certainly havent kept a record of the interest paid although the banks probably would have it.

Upkeep costs ? painting? roof restoration? landscaping improvements.

Anyway its a can of worms that wont get through the parliament

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Lisa Jones

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Re: Axing CGT concessions on the family home
Reply #46 - Jan 13^th, 2016 at 7:56am

John Smith wrote on Jan 11^th, 2016 at 10:34am:

Axing capital gains tax exemption on homes could raise $46b, new research says

The Federal Government could raise as much as $46 billion a year if it axes the capital gains tax (CGT) exemption on the family home, according to new research.

A new Capital Gains Tax report, issued by think tank The Australia Institute with data by the National Centre for Social and Economic Modelling, said that more than half the benefit of the CGT exemption was enjoyed by households in the top 20 per cent of incomes.

The report estimated that ending the exemption for houses worth more than $2 million would still draw nearly $12 billion in new revenue over four years.

Australia Institute executive director Ben Oquist said at an annual loss of $46 billion, the CGT exemption for primary residences was costing the Government more than its entire defence or aged pension spending.

Mr Oquist told the ABC it would be "nonsensical" to exclude the exemption from serious tax reform.

"While it's probably politically unrealistic to think about removing that exemption altogether, one thing we've modelled today is looking at removing the exemption for homes worth more than $2 million," he said.

"Such a move would affect a very small amount of the population."

http://www.abc.net.au/news/2016-01-11/capital-gains-tax-reform-could-raise-46-bi...

won't happen .... nor should it.

Got a far simpler/easier/quicker solution.

If you're gonna go down the CGT path to raise revenue....how about axing the well known CGT exemption to investment properties bought before 20 September 1985.

Duh!

Useless politicians. Grrrrrr!

Might go and do some washing now....

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beer

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Re: Axing CGT concessions on the family home
Reply #47 - Jan 13^th, 2016 at 8:23am

Lisa Jones wrote on Jan 13^th, 2016 at 7:56am:

John Smith wrote on Jan 11^th, 2016 at 10:34am:

Axing capital gains tax exemption on homes could raise $46b, new research says

The Federal Government could raise as much as $46 billion a year if it axes the capital gains tax (CGT) exemption on the family home, according to new research.

A new Capital Gains Tax report, issued by think tank The Australia Institute with data by the National Centre for Social and Economic Modelling, said that more than half the benefit of the CGT exemption was enjoyed by households in the top 20 per cent of incomes.

The report estimated that ending the exemption for houses worth more than $2 million would still draw nearly $12 billion in new revenue over four years.

Australia Institute executive director Ben Oquist said at an annual loss of $46 billion, the CGT exemption for primary residences was costing the Government more than its entire defence or aged pension spending.

Mr Oquist told the ABC it would be "nonsensical" to exclude the exemption from serious tax reform.

"While it's probably politically unrealistic to think about removing that exemption altogether, one thing we've modelled today is looking at removing the exemption for homes worth more than $2 million," he said.

"Such a move would affect a very small amount of the population."

http://www.abc.net.au/news/2016-01-11/capital-gains-tax-reform-could-raise-46-bi...

won't happen .... nor should it.

Got a far simpler/easier/quicker solution.

If you're gonna go down the CGT path to raise revenue....how about axing the well known CGT exemption to investment properties bought before 20 September 1985.

Duh!

Useless politicians. Grrrrrr!

Might go and do some washing now....

Useless = 0, they are -100. Don't over estimate them.

They create jobs for themselves and ask people to pay.

How simple it can be, carge everybody CGT in every case, doesn't matter owner occupied or investment. Then you can always ask for tax return to one of the property you own.

You simply need a computer program linked with real estate registration system to check this. 10 tax officers can run this for whole country.

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Lisa Jones

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Re: Axing CGT concessions on the family home
Reply #48 - Jan 13^th, 2016 at 8:32am

beer wrote on Jan 13^th, 2016 at 8:23am:

Lisa Jones wrote on Jan 13^th, 2016 at 7:56am:

John Smith wrote on Jan 11^th, 2016 at 10:34am:

Axing capital gains tax exemption on homes could raise $46b, new research says

The Federal Government could raise as much as $46 billion a year if it axes the capital gains tax (CGT) exemption on the family home, according to new research.

A new Capital Gains Tax report, issued by think tank The Australia Institute with data by the National Centre for Social and Economic Modelling, said that more than half the benefit of the CGT exemption was enjoyed by households in the top 20 per cent of incomes.

The report estimated that ending the exemption for houses worth more than $2 million would still draw nearly $12 billion in new revenue over four years.

Australia Institute executive director Ben Oquist said at an annual loss of $46 billion, the CGT exemption for primary residences was costing the Government more than its entire defence or aged pension spending.

Mr Oquist told the ABC it would be "nonsensical" to exclude the exemption from serious tax reform.

"While it's probably politically unrealistic to think about removing that exemption altogether, one thing we've modelled today is looking at removing the exemption for homes worth more than $2 million," he said.

"Such a move would affect a very small amount of the population."

http://www.abc.net.au/news/2016-01-11/capital-gains-tax-reform-could-raise-46-bi...

won't happen .... nor should it.

Got a far simpler/easier/quicker solution.

If you're gonna go down the CGT path to raise revenue....how about axing the well known CGT exemption to investment properties bought before 20 September 1985.

Duh!

Useless politicians. Grrrrrr!

Might go and do some washing now....

Useless = 0, they are -100. Don't over estimate them.

They create jobs for themselves and ask people to pay.

How simple it can be, charge everybody CGT in every case, as long as it's an investment property. Then you can always ask for a tax return to one of the properties you own.

You simply need a computer program linked with real estate registration systems to check this. 10 tax officers can run this for whole country.

Fixed.

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If I let myself be bought then I am no longer free.

HYPATIA - Greek philosopher, mathematician and astronomer (370 - 415)

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Sir lastnail

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Re: Axing CGT concessions on the family home
Reply #49 - Jan 13^th, 2016 at 8:38am

beer wrote on Jan 13^th, 2016 at 8:23am:

Lisa Jones wrote on Jan 13^th, 2016 at 7:56am:

John Smith wrote on Jan 11^th, 2016 at 10:34am:

Axing capital gains tax exemption on homes could raise $46b, new research says

The Federal Government could raise as much as $46 billion a year if it axes the capital gains tax (CGT) exemption on the family home, according to new research.

A new Capital Gains Tax report, issued by think tank The Australia Institute with data by the National Centre for Social and Economic Modelling, said that more than half the benefit of the CGT exemption was enjoyed by households in the top 20 per cent of incomes.

The report estimated that ending the exemption for houses worth more than $2 million would still draw nearly $12 billion in new revenue over four years.

Australia Institute executive director Ben Oquist said at an annual loss of $46 billion, the CGT exemption for primary residences was costing the Government more than its entire defence or aged pension spending.

Mr Oquist told the ABC it would be "nonsensical" to exclude the exemption from serious tax reform.

"While it's probably politically unrealistic to think about removing that exemption altogether, one thing we've modelled today is looking at removing the exemption for homes worth more than $2 million," he said.

"Such a move would affect a very small amount of the population."

http://www.abc.net.au/news/2016-01-11/capital-gains-tax-reform-could-raise-46-bi...

won't happen .... nor should it.

Got a far simpler/easier/quicker solution.

If you're gonna go down the CGT path to raise revenue....how about axing the well known CGT exemption to investment properties bought before 20 September 1985.

Duh!

Useless politicians. Grrrrrr!

Might go and do some washing now....

Useless = 0, they are -100. Don't over estimate them.

They create jobs for themselves and ask people to pay.

How simple it can be, carge everybody CGT in every case, doesn't matter owner occupied or investment. Then you can always ask for tax return to one of the property you own.

You simply need a computer program linked with real estate registration system to check this. 10 tax officers can run this for whole country.

Of course they can do this easily. It's the light shoe brigade lobbyists that go crying to the government anytime their real estate pot of gold is threatened. You see they want the reward without any risk and that is not a normal free market system.

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Dnarever

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Re: Axing CGT concessions on the family home
Reply #50 - Jan 13^th, 2016 at 11:47am

beer wrote on Jan 13^th, 2016 at 7:38am:

Dnarever wrote on Jan 13^th, 2016 at 7:24am:

Sir lastnail wrote on Jan 12^th, 2016 at 1:05pm:

freediver wrote on Jan 12^th, 2016 at 12:54pm:

Sounds good to me. They'd have to make it apply to from the next sale date, otherwise there would be a massive sell-off and property market crash. Although then you might get the opposite problem where people hang on to a house they would otherwise sell.

They would also have to allow people to claim a tax deduction on the interest they pay on the home loan, otherwise they would be taxing the family home at a higher rate than an investment property. Might be simpler to leave it as is.

If you allow tax deductions on interest payments for the family home then that would level the playing field somewhat.

But this idea that you have to be compensated for paying a tax on a profit is absurd anyway because taxes are a fact of life !!

It isn't really a profit unless it is an investment property. If it is your family home the next home you purchase will have increased in cost by about the same rate. You don't tend to make profit from your family home at all.

If 2 persons live in a 6 bedroom property, the rest 4 rooms can be profitable.

And are about 2% of the time or not for 98% of the population.

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longweekend58 Gold Member Offline Australian Politics Posts: 45675 Gender:	Re: Axing CGT concessions on the family home Reply #51 - Jan 13^th, 2016 at 6:51pm where's our resident stupid greenie telling us how CGT and death taxes are the way to go? Havn't seen him in weeks? is he in jail?
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Sun Tzu Gold Member Offline Australian Politics Posts: 1148 Gender:	Re: Axing CGT concessions on the family home Reply #52 - Jan 13^th, 2016 at 8:47pm longweekend58 wrote on Jan 13^th, 2016 at 6:51pm: where's our resident stupid greenie telling us how CGT and death taxes are the way to go? Havn't seen him in weeks? is he in jail? Fear not McTavish. Asbestos infested fibro shacks like yours will be exempted.
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longweekend58

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Re: Axing CGT concessions on the family home
Reply #53 - Jan 14^th, 2016 at 8:49am

Sun Tzu wrote on Jan 13^th, 2016 at 8:47pm:

longweekend58 wrote on Jan 13^th, 2016 at 6:51pm:

where's our resident stupid greenie telling us how CGT and death taxes are the way to go?

Havn't seen him in weeks? is he in jail?

Fear not McTavish. Asbestos infested fibro shacks like yours will be exempted.

if you had half a brain you would know that 'fibro shacks' exists in VIC and NSW and some in QLD. NONE in SA.

idiot.

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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Sir lastnail Gold Member Offline Australian Politics Posts: 30543 Gender:	Re: Axing CGT concessions on the family home Reply #54 - Jan 14^th, 2016 at 8:55am longweekend58 wrote on Jan 13^th, 2016 at 6:51pm: where's our resident stupid greenie telling us how CGT and death taxes are the way to go? Havn't seen him in weeks? is he in jail? what ever happened to the budget emergency and 100 million a day interest payments ?
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Lisa Jones

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Re: Axing CGT concessions on the family home
Reply #55 - Jan 14^th, 2016 at 9:07am

longweekend58 wrote on Jan 14^th, 2016 at 8:49am:

Sun Tzu wrote on Jan 13^th, 2016 at 8:47pm:

longweekend58 wrote on Jan 13^th, 2016 at 6:51pm:

where's our resident stupid greenie telling us how CGT and death taxes are the way to go?

Havn't seen him in weeks? is he in jail?

Fear not McTavish. Asbestos infested fibro shacks like yours will be exempted.

if you had half a brain you would know that 'fibro shacks' exists in VIC and NSW and some in QLD. NONE in SA.

nice person.

Yep.

In any event, who cares if it's a fibro shack?

Is that old shack on a good sized parcel of land in a good location?

IF SO, GRAB IT. FAST!

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If I let myself be bought then I am no longer free.

HYPATIA - Greek philosopher, mathematician and astronomer (370 - 415)

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Sir lastnail

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Re: Axing CGT concessions on the family home
Reply #56 - Jan 14^th, 2016 at 1:07pm

Lisa Jones wrote on Jan 14^th, 2016 at 9:07am:

longweekend58 wrote on Jan 14^th, 2016 at 8:49am:

Sun Tzu wrote on Jan 13^th, 2016 at 8:47pm:

longweekend58 wrote on Jan 13^th, 2016 at 6:51pm:

where's our resident stupid greenie telling us how CGT and death taxes are the way to go?

Havn't seen him in weeks? is he in jail?

Fear not McTavish. Asbestos infested fibro shacks like yours will be exempted.

if you had half a brain you would know that 'fibro shacks' exists in VIC and NSW and some in QLD. NONE in SA.

nice person.

Yep.

In any event, who cares if it's a fibro shack?

Is that old shack on a good sized parcel of land in a good location?

IF SO, GRAB IT. FAST!

yeh sell it to a china-man.

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"All of the arab states have said we will have peace with Israel when there is a state of Palestine as a UN member state and properly constituted." - Jeffrey Sachs.

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lee

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Re: Axing CGT concessions on the family home
Reply #57 - Jan 14^th, 2016 at 1:26pm

Lisa Jones wrote on Jan 13^th, 2016 at 7:56am:

If you're gonna go down the CGT path to raise revenue....how about axing the well known CGT exemption to investment properties bought before 20 September 1985.

That provision is fast approaching its use-by date.

If people were 40 when they purchased the asset, that means they are now 70.

When they die the pre-CGT status dies with them. The asset is deemed to have been acquired by the beneficiary on date of death.

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Lisa Jones

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Re: Axing CGT concessions on the family home
Reply #58 - Jan 14^th, 2016 at 5:14pm

lee wrote on Jan 14^th, 2016 at 1:26pm:

Lisa Jones wrote on Jan 13^th, 2016 at 7:56am:

If you're gonna go down the CGT path to raise revenue....how about axing the well known CGT exemption to investment properties bought before 20 September 1985.

That provision is fast approaching its use-by date.

If people were 40 when they purchased the asset, that means they are now 70.

When they die the pre-CGT status dies with them. The asset is deemed to have been acquired by the beneficiary on date of death.

70????

I personally know 6 individuals who are in their 50's and who are sitting quite comfortably thanks to that exemption.

5 of them are my neighbours, the 6th is my husband lol!

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If I let myself be bought then I am no longer free.

HYPATIA - Greek philosopher, mathematician and astronomer (370 - 415)

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Lisa Jones

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Re: Axing CGT concessions on the family home
Reply #59 - Jan 14^th, 2016 at 5:15pm

Sir lastnail wrote on Jan 14^th, 2016 at 1:07pm:

Lisa Jones wrote on Jan 14^th, 2016 at 9:07am:

longweekend58 wrote on Jan 14^th, 2016 at 8:49am:

Sun Tzu wrote on Jan 13^th, 2016 at 8:47pm:

longweekend58 wrote on Jan 13^th, 2016 at 6:51pm:

where's our resident stupid greenie telling us how CGT and death taxes are the way to go?

Havn't seen him in weeks? is he in jail?

Fear not McTavish. Asbestos infested fibro shacks like yours will be exempted.

if you had half a brain you would know that 'fibro shacks' exists in VIC and NSW and some in QLD. NONE in SA.

nice person.

Yep.

In any event, who cares if it's a fibro shack?

Is that old shack on a good sized parcel of land in a good location?

IF SO, GRAB IT. FAST!

yeh sell it to a china-man.

You have to fix it up first lol Grin

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If I let myself be bought then I am no longer free.

HYPATIA - Greek philosopher, mathematician and astronomer (370 - 415)

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