.

Image provided by Imagine Buddy.

The Australian Capital Gains Tax

The Australian Capital Gains tax has been a great system generating income for Australia’s social policies based of our combined profit generation.

I would change the 12 month rule and just have the 50% discount available from the start for investments excluding properties.

For properties, we need to encourage new buildings.

I agree with the CPI indexation of the base line for properties and just taxing on the difference between the new baseline and the sales price.

All home owner primary homes do not have CGT.

Investment properties will only incur the CGT discount if it is a new build, old builds will no longer have a CGT discount for investment properties.

There will be a partial grand fathering of the policy, existing owners of old build investment properties will have 4 years to capitalise on the existing CGT discount system, with a flat 20% decrease per annum.

2027 – 100% of 50% CGT applied
2028 – 80% of 50% CGT applied
2029 – 60% of 50% CGT applied
2030 – 40% of 50% CGT applied
2031 – 20% of 50% CGT applied

New builds will have 50% CGT discount period of seven years, and investment properties will have a depreciation schedule available for seven years.