Albo to the rescue

[red750]

Keeping pace with inflation is not making a profit. It means not falling behind.

[willedoo]

4 hours ago, nomadpete said:

I am concerned about losing the CGT relief for primary home owners.

 

I doubt even each way Albo and co would be silly enough to levy CGT on the suburban home block. It would be political suicide. Most of the country would vote for whichever party vowed to reverse it. It would be like banning beer and television (some would say that would be a good thing).

[facthunter]

Why' Call him "Each way Albo"? he's firm when he needs to be. Barking at the Moon Just Makes the Dog unpopular. Nev
" 

[Litespeed]

Labor is not proposing taxing the family home, thats just bullshit pushback from the right wing media.

 

Just a scare campaign to confuse the punters.

[facthunter]

Murdoch Equals Fear and Hate in a fact free Package, There should be a Law against Printing falsehoods for  Personal Benefit , Bring on a Functioning Factchecker and we get Better Democracy. Nev

[Jerry_Atrick]

The original article I saw was either on the ABC or The Age website (when I go tot he Guardian, it usually only feeds me British based or, for global news, what it considers important or interesting for Brits. There was no mention of CGT for the primary residence, but there was mention on negative grearing being removed from all but a private investor's first investment property; 

 

It must have been The Age, as I doubt very much the ABC wouls pull an article for a reason other than it iwas plainly inaccurate.  But here is what I found from teh ABC: https://www.abc.net.au/news/2026-02-04/capital-gains-tax-changes-among-options-as-labor-weighs-housing/106306738

 

And it only mentions CGT discountsd being removed from investment properties. Which, IMHO, is the correct thing to do. Inherited properties that are then used by the beneficiaries to rent out (i.e. become an investment propety) should be required to have a surveyor's valuation at the commencement of them being advertised for rent so that the CGT clock starts tickign with an accurate assesment.. Or maybe ion this case, because of the emotional ties, maybe wait 12 - 24 months and if they sell in that period, then it is CGT free; after that the valuation has to be obtained and CGT has to be paid on a subsequent sale. Of course, this creates a perverse outcome on an intergenerational basis. Keep the original home in the family and pass it on to subsequent generations = no tax. Convert it to cash to invest in some other form of asset/wealth building investment, and you pat tax, and have less to invest and pass on. Would have to look into the stats of how many homes are passed onto multiple generations to work out the real impact.

 

 

Be that as it may, it would be incredibly uunfair to  CGT the primary property anyway. Not because of the fact it was already paid for by post tax dollars and insn;t an investment per se, but a place to live; but also, the deduction being inflation rate is not representative of the true inflation rate of a house. Unless you are moving into a care home of some sort, you are likely to be purchasing another property to live in. As house price inflation often skyrockets past the normal inflation rate and the price increase of houses is excluded from the inflation calculation, if you sold your house and had to pay CGT on it, you could not afford at least a similar standard of house - you would be going backward. And this would probably stall the housing market (except for those thast had to sell) and foprce prices up even further - no supply but a demand still will tend to do that. 

 

Labor, or Albo is not stupid. 

[willedoo]

I haven't read a lot of news on the government plans, but haven't seen any reference to anybody thinking of introducing tax on the family home. The only reference I've seen to it is the daydreams of an ANU twit in this article:

https://www.afr.com/politics/federal/4m-pensioners-how-australia-s-tax-system-subsidises-wealth-over-work-20260227-p5o666

 

I could originally read that article yesterday, but opening it now has the subscribers only block on it and turning javascript off doesn't unlock it. Maybe it only allows a free reading by one IP address once.

Edited 16 hours ago by willedoo

[willedoo]

4 hours ago, facthunter said:

Why' Call him "Each way Albo"?

Specifically to get a bite from you Nev. 

[willedoo]

3 hours ago, Litespeed said:

Labor is not proposing taxing the family home, thats just bullshit pushback from the right wing media.

 

Just a scare campaign to confuse the punters.

Can you provide some links to the articles? I haven't seen anything apart from that ANU bloke dreaming about it.

[Jerry_Atrick]

3 hours ago, willedoo said:

Maybe it only allows a free reading by one IP address once.

This is the first time I have tried an AFR artivle for eons and I am sure my IP address has changed since I last accessed as I recently changed ISP. My guess is they allowed free use for a short period.

 

[nomadpete]

13 hours ago, willedoo said:

but haven't seen any reference to anybody thinking of introducing tax on the family home.

Well, there already is.

For any homeowner that has more than two hectares.

According to our accountant my mother-in-law pays CGT on the majority of her land. Her 100 acre 'farm' is in a rainshadow and never produced an income. Due to urban sprawl it now seems closer to town so it has been revalued as an asset which precluded the age pension (lost that a couple of yrs back) and now around 70k will go as CGT.

You might think that's small bikkies as a % of 1.6 million (less commission), but matters - it is costing 650k to get her in the door of a nursing home. The nursing home still charges substantial monthly costs, so the rest of her wealth will be whittled away by that.

Her present temporary residential care is costing about 1.5k per week until the property sells and the market is flat so that might take a while. Some people have to take a mortgage on the home to tide them over until the home sells. Aged care is a different issue but CGT comes into it.

 

So CGT is not a simple thing. Tax reform isn't either. But successive governments have dragged their feet on that.

 

 

Edited 2 hours ago by nomadpete

[facthunter]

Writing stuff to get a Bite from Me specifically Willedoo? How is THAT acceptable. to do to anybody. ?  A joke at  someone else's expense is not a Proper. Joke. Nev

Edited 1 hour ago by facthunter
more content.