Latest news with #JimChalmers
Sky News AU
a day ago
- Business
- Sky News AU
'Assault on investors': Labor's Economic Reform Roundtable predicted to leave Australia worse off
Taxes will be drastically hiked following Labor's Economic Reform Roundtable next month, former Treasury assistant secretary David Pearl has predicted. Mr Pearl said the capital gains tax rate could be doubled following the government's brainstorming session, as well as dividend imputation and negative gearing coming 'under the gun'. The former Treasury official said he believed the Albanese government had already made a decision on the measures and outcomes of the meeting as it would not risk being 'spontaneous'. 'The outcomes will be already developed by now. This is just a show. Jim Chalmers and Albanese are from a school of political management that doesn't tolerate any spontaneity or any surprises or any real discussion in this so-called roundtable,' he said. Mr Pearl said he thought the government would revert to Bill Shorten and Chris Bowen's 'disastrous 2019 assault on investors'. 'I think under the gun will be the capital gains tax discount. So we could see a doubling of the capital gains tax rate with no grandfathering,' he said. 'We could also see negative gearing, which for asset-poor people, for nurses and tradies who are buying their first home, is critical to reduce interest costs. That will be under the gun. 'And I think we'll also see a renewed assault on dividend imputation.' The Economic Reform Roundtable will take place on August 19 to 21 and places emphasis on global uncertainty causing economic disruptions to productivity and budget sustainability. In his National Press Club address last month, Treasurer Jim Chalmers said 'no sensible progress' on productivity or budget sustainability could be made without proper consideration of 'more tax reform'. The Treasurer said the roundtable in August was a 'well-time opportunity' to shape the direction of long-term reform. 'Participants will have a meaningful and influential role and a proper say,' he said. 'It's a genuine attempt to find common ground if it exists, in the service of our shared national economic interest.' Mr Chalmers said a mix of about 25 government, business, union and civil society representatives and experts will sit in the Cabinet room and brainstorm the Albanese government's 'targeted agenda'. 'We won't come at this from an ideological point of view but from the practical, pragmatic and problem-solving middle ground we're most comfortable on,' the Treasurer said.
Perth Now
a day ago
- Business
- Perth Now
‘Too long': Plan to crack huge housing hurdle
Thousands of new houses could be built in the next five years with tweaks to tax rules that Labor has resisted 'for too long', experts say. Increasing tax breaks for investors in new properties is needed for Australia to meet its 'ambitious' 1.2 million home target by 2030 according to a new research paper by The McKell Institute. Four tweaks to capital gains tax – including an increase to the 50 per cent discount for new units but a reduction on discounts for detached dwellings – are being put forward as a 'circuit breaker'. The paper will be submitted to the federal productivity roundtable forum, which Treasurer Jim Chalmers is promoting as a way to build consensus on long-term economic reform. 'Labor has resisted change to the CGT discount for too long,' McKell chief executive Edward Cavanough said. 'The CGT tax discount is neither good nor evil, but it should be better calibrated to actually achieve our social aims.' Experts are split on the best way to build more houses. NewsWire / Flavio Brancaleone Credit: News Corp Australia 'Instead of encouraging property investors to bid up the price of existing housing stock we should be encouraging them to contribute to the construction of new dwellings.' Capital gains tax is paid when you buy an asset and then later sell it for a profit; the profit you make is taxed as income. The capital gains tax discount kicks in when, if you own an investment property for 12 months and then sell it, you only pay tax on half the profit you made. The richest 10 per cent of Australians reap the benefits of more than half the capital gains tax discounts, government data shows. Sale of the home you own and live in is exempt from capital gains tax. Federal Treasurer Jim Chalmers will lead the roundtable meetings in Canberra next month. NewsWire / Martin Ollman Credit: News Corp Australia The plan projects up to 130,000 extra new homes could be built by 2030. 'A key problem with our existing tax settings on property is they orient too much investment toward established dwellings at the cost of new supply,' Professor Holden said. 'There is nothing wrong with the commonly held desire of everyday investors to secure their future by investing in the housing market. 'But this desire should be harnessed to achieve our national objectives on housing supply.' The federal government has set a lofty goal of 1.2 million new houses being built by 2030 that would require 220,000 new dwellings per year. About 160,000 new homes are built each year. The monthly new home target has been met just once since the target was set in early 2023, and even the federal Treasury has suggested the target will not be hit under the current policy settings. In tune with the McKell research, a group of rank-and-file Labor members has also thrown their voice behind a proposal to curb the tax discounts, with Labor for Housing saying a reduction in the discounts would help build more houses. Mr Chalmers has billed the roundtable meetings as a chance to set in motion aspirational reform. In June, Mr Chalmers said changes to capital gains tax was not something the government was 'looking at right now' but acknowledged there was appetite. 'I think it is really important we don't narrow that, limit that, those ideas people put forward. We've had a view about that in the past. I do suspect people will raise it, and we'll listen respectfully when they do,' he said.
News.com.au
a day ago
- Business
- News.com.au
‘Too long': Call to flip major tax breaks for property owners
Thousands of new houses could be built in the next five years with tweaks to tax rules that Labor has resisted 'for too long', experts say. Increasing tax breaks for investors in new properties is needed for Australia to meet its 'ambitious' 1.2 million home target by 2030 according to a new research paper by The McKell Institute. Four tweaks to capital gains tax – including an increase to the 50 per cent discount for new units but a reduction on discounts for detached dwellings – are being put forward as a 'circuit breaker'. The paper will be submitted to the federal productivity roundtable forum, which Treasurer Jim Chalmers is promoting as a way to build consensus on long-term economic reform. 'Labor has resisted change to the CGT discount for too long,' McKell chief executive Edward Cavanough said. 'The CGT tax discount is neither good nor evil, but it should be better calibrated to actually achieve our social aims.' 'Instead of encouraging property investors to bid up the price of existing housing stock we should be encouraging them to contribute to the construction of new dwellings.' Capital gains tax is paid when you buy an asset and then later sell it for a profit; the profit you make is taxed as income. The capital gains tax discount kicks in when, if you own an investment property for 12 months and then sell it, you only pay tax on half the profit you made. The richest 10 per cent of Australians reap the benefits of more than half the capital gains tax discounts, government data shows. Sale of the home you own and live in is exempt from capital gains tax. The plan projects up to 130,000 extra new homes could be built by 2030. 'A key problem with our existing tax settings on property is they orient too much investment toward established dwellings at the cost of new supply,' Professor Holden said. 'There is nothing wrong with the commonly held desire of everyday investors to secure their future by investing in the housing market. 'But this desire should be harnessed to achieve our national objectives on housing supply.' The federal government has set a lofty goal of 1.2 million new houses being built by 2030 that would require 220,000 new dwellings per year. About 160,000 new homes are built each year. The monthly new home target has been met just once since the target was set in early 2023, and even the federal Treasury has suggested the target will not be hit under the current policy settings. In tune with the McKell research, a group of rank-and-file Labor members has also thrown their voice behind a proposal to curb the tax discounts, with Labor for Housing saying a reduction in the discounts would help build more houses. Mr Chalmers has billed the roundtable meetings as a chance to set in motion aspirational reform. In June, Mr Chalmers said changes to capital gains tax was not something the government was 'looking at right now' but acknowledged there was appetite. 'I think it is really important we don't narrow that, limit that, those ideas people put forward. We've had a view about that in the past. I do suspect people will raise it, and we'll listen respectfully when they do,' he said.
Bloomberg
2 days ago
- Business
- Bloomberg
Indonesia Plans First Kangaroo Bond in Boost to Australian Ties
Indonesia is set to issue its first Australian dollar-denominated debt as the two countries strengthen their financial partnership. 'Subject to market conditions, Indonesia will also issue its first-ever Australian dollar-denominated 'Kangaroo bond' in August — a vote of confidence and meaningful step forward,' the nations' financial chiefs, Sri Mulyani Indrawati and Jim Chalmers, said in a statement Saturday. 'This will open new pathways for Australian investors to find quality investment products, support Indonesia's growth and strengthen financial integration.'
Daily Mail
2 days ago
- Business
- Daily Mail
Beloved ABC star tragically dies after battle with cancer
Veteran reporter Peter Ryan has died aged 64 after a long battle with thyroid cancer. The Walkley Award-winning journalist, who worked as a reporter for 45 years with the ABC, was diagnosed with metastatic thyroid cancer in 2014. His family has confirmed he passed away in Sydney on Friday night. Peter began his career as a cadet at the Sydney Daily Mirror before landing a job at the ABC. He worked as the head of TV news and current affairs in Victoria, before becoming the ABC's Washington bureau chief and the founding editor of Lateline Business, which later became The Business. From A-list scandals and red carpet mishaps to exclusive pictures and viral moments, subscribe to the DailyMail's new showbiz newsletter to stay in the loop. In 2017, Peter won the Walkley Award for his coverage of the Commonwealth Bank scandal, which exposed deposit machines being used by drug syndicates to launder millions of dollars. His coverage contributed to the calling of the banking Royal Commission. In 2018, he was the National Press Club Finance Journalist of the Year. He was also awarded the Order of Australia Medal in 2022 for his service to journalism. Peter was a senior business correspondent from 2016 until he retired in June. Peter moved into palliative care and wanted to spend more time with his wife Mary Cotter and daughter Charlotte. Following his retirement, Treasurer Jim Chalmers said: 'Peter Ryan is an absolute legend. 'Every day as you wake up and you think about what's happening in the economy, if you only needed to listen to one voice to be sure that you got its essential elements, it would be Peter's.' The ABC has paid tribute to the veteran reporter in a statement following news of his passing. 'The ABC is deeply saddened by the death of our great friend and esteemed colleague Peter Ryan,' the statement read. 'After a distinguished 45-year career in journalism Peter retired from the ABC last month due to ill health. 'We extend our heartfelt condolences to Peter's family.' ABC News Director Justin Stevens also said Peter has left a 'significant legacy' and 'touched the lives of many'. 'Through his journalism, he had a profound impact on the lives of Australians and our society. It was a privilege to know him and work alongside him.'
