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 yesterday at 09:05 AM 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 16 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 15 hours ago by facthunter
more content.

[willedoo]

Thanks Pete, I know well the two hectare ruling and have been through it all with accountants back when I was thinking of selling a few years ago. I was referring to the idea of taxing those under two hectares as well, which would make every suburban house up for CGT. That idea was floated recently by someone at the ANU but I haven't found any reference to Labor looking at the option. All I couldd find was some older stuff about the unrealised capital gain issue that was newsworthy a while back.

 

With the CGT ruling on blocks over two hectares, I'd be happy if they bought in an exemption if you've lived there for more than twenty years, hadn't run a business on the property and used it as your primary residence. That should be proof enough that you're not an investor and speculator. They have that twenty year exemption for pension eligibility. No tax system is ever equal. If I sold here, I would be up for between 50 to 300 thousand in tax depending on some details. A mate just recently sold his farm for six million and didn't pay a cent of CGT because he owned it before the CGT introduction date.

 

[onetrack]

No-one ever went broke, paying huge amounts of tax. Just saying.

[willedoo]

I wonder how those countries with really low flat tax systems get their revenue. Hungary and Bulgaria have 10% flat tax. Maybe they have high resource earnings, and they might not spend as much on the population as we do. We get more annual revenue from excise on beer than we do from the petroleum resource rent tax, 2.7 billion to 1.5 billion. That sounds like a lot of beer, or a lot of tax on it.

[octave]

We went through the capital gains tax on our house on 44 acres.  The process involved valuing the property.   We did this ourselves (which is legal but unusual).    I think we ended up paying around $1500.     The important thing to remember is that the two hectare area you are allowed to exclude does not have to be in one area; it just has to total 2 hectares. In our case, we included a tight area around the house. We also included a small dam and our river frontage.  This meant the balance of the land to be included for GST was relatively low value. This is perfectly legal and satisfies the tax department. We spent many months doing our research, and we adopted standard industry valuation practices.    Note this was done in 2017, so I can't be sure things haven't changed since then. 

[willedoo]

That's one thing the accountant told me which is a good concession. The two hectares doesn't have to be contiguous, so you can squeeze all the high value infrastructure in to the exempted area. I'm not up to date on whether you can still self value. I went through it with the accountant in 2021.

[facthunter]

The ability to sell off Part of Mine was changed by the Victorian Gov't after I purchased it.  Nev

[willedoo]

The local council here has a bad habit of rezoning properties without telling the owner. It's happened twice to me and both times I've found out a couple of years later when doing a property search. It was originally a dual zoned block, rural A and rural B due to a boundary realignment. A few years later council changed it to rural residential without telling me, and the same deal a few years later when they changed it to one called limited development (landscape residential). It's basically a green zoning where you can clear up to 600 sq/metres for a residence but not allowed to touch the rest of it.

[facthunter]

Shy Cancels are a good example of the failure of the Democratic Process. . Nev

[facthunter]

The LAST thing they Care about is You, the ratepayer. To them You are a Money tree,  ready to be picked.   Nev

[red750]

This is probably BS, haven't heard it reported anywhere else, but thought you might be interested anbout what's on the net.

 

https://nflinsight360.com/posts/anthony-albanese-has-jυst-set-the-iпterпet-oп-fire-aпd-washiпgtoп-is-shakiпg-suhao-suhao/

[onetrack]

Peter, that's a 100% BS "fake news" article - Albo has said nothing of the kind attributed to him in that article. I don't know why you keep posting these garbage "news" sites. It's all made up.

[Marty_d]

If in doubt, search the purported event and see if anything comes up on respected sites - Reuters, ABC, BBC, Washington Post etc.

If it doesn't, don't bother.