Radical push is announced to tax Aussie workers' family home: 'Strong arguments for doing so'
Peter Siminski from the University of Technology, Sydney, and Roger Wilkins from the University of Melbourne, argue the longstanding capital gains tax exemption on the family home favours the rich and costs the government much-needed revenue.
They are advocating the tax exemption be abolished ahead of next week's Economic Reform Roundtable in Canberra where Treasurer Jim Chalmers is hoping for ideas to increase productivity.
'Here, we serve some food for thought – the taxation of owner-occupied housing,' the professors wrote in an opinion piece for The Conversation.
'This may seem distasteful, but there are some strong arguments for doing so.'
A property owner's principal place of residence has been exempt from the capital gains tax since it was introduced into law in September 1985.
Neither major party - not even the Greens - has called for the capital gains tax to be imposed when someone sells the home they live in.
But the Prof Siminski and Prof Wilkins argue not taxing the family home costs Treasury $50billion a year in foregone revenue.
'The size of tax concessions for owner-occupied housing is similar to that of superannuation, and much larger than for investment property,' they said.
'Treasury estimates it forgoes more than A$50 billion per year by exempting owner-occupied housing from capital gains tax.'
They calculated that average income for outright home owners was 34 per cent higher than for renters, but it was 86 per cent higher when housing income was included.
Someone can rent out their home for six years and still be exempt from the capital gains tax when a house or unit is sold.
Older Australians who bought their house to live in during the 1980s and 1990s, when property was much cheaper compared with incomes, are spared from paying the capital gains tax when they sell.
But younger Australians on average salaries, who are priced out of buying a house in Sydney, often resort to buying investment properties in more affordable cities to build some wealth in real estate as a 'rent-vestor'.
When these people sell, they have to pay the capital gains tax, but with a 50 per cent discount that has applied since September 1999.
Labor lost the 2016 and 2019 elections with a plan to halve the 50 per cent capital gains tax discount to 25 per cent.
Prime Minister Anthony Albanese ruled out changes to the capital gains tax discount in Opposition, but the ACTU has this week called for the CGT discount to be restricted to one investment property.
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The Guardian
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'Also be aware that your car may well be silent. So be extra vigilant in looking out for vulnerable road users like pedestrians and cyclists because they won't hear you.' The road safety organisation, which provides school driver programs for more than 80 schools in Melbourne and Victoria, has a range of vehicles for students to learn in, including a Nissan Leaf, to give young people the experience of driving an electric vehicle. Parents switching to a shiny new electric car might be tempted to hold on to their older model for their teenagers to learn in. But Collier recommends young drivers learn in 'the safest car you can afford', ideally one with a five-star Ancap rating. 'A lot of young people tend to get the hand-me-down vehicles from other members of the family,' she says. 'We would argue that the most vulnerable driver should really be in the safest car possible.' Jones says the learning process is a good opportunity to share tips about the 'non-driving bits' of driving an EV – how to use a public charger, charging etiquette and scheduling your home charging to make the most of cheap energy. 'In our experience learner drivers (and drivers generally) adapt pretty quickly when it comes to EVs', the Electric Vehicle Council's Julie Delvecchio says. 'Often, once they get in an EV … they never want to go back to petrol and diesel, because it's so smooth, so quiet and easy to drive.' Regardless of what car they learn in, Menzies says learning to drive is an empowering experience for most young people. 'We see the joy that it brings, as well as the disappointment when they fail.' 'In our culture, getting your licence is somewhat of a right of passage for the young person becoming a big person.' Your contact details are helpful so we can contact you for more information. They will only be seen by the Guardian. 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