Latest news with #tax exemption
Daily Mail
5 days ago
- Business
- Daily Mail
Radical push is announced to tax Aussie workers' family home: 'Strong arguments for doing so'
Australians should pay capital gains tax on their family home in order to tackle the housing crisis, a pair of influential economics professors argue. 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.
Forbes
04-08-2025
- Business
- Forbes
What The One Big Beautiful Bill Means For Your Estate Plan
On July 4, 2025, the One Big Beautiful Bill Act was signed into law. For estate planners, the bill brought certainty to the uncertainty surrounding the federal estate tax exemption. The 2025 estate tax exemption is $13,990,000. If Congress had not acted, the exemption would have been cut approximately in half starting in 2026. The new law permanently increases the exemption to $15 million as of January 1, 2026. Starting in 2027, the amount will then be adjusted yearly for inflation. Couples who are married will be able to pass $30 million to their beneficiaries free of federal estate tax. At a 40% tax rate, that is a $12 million tax savings. Apart from the permanent tax savings, what does this mean for your estate planning: The One Big Beautiful Bill locks in the amount you can leave free of estate taxes. Make sure you have maximized your planning opportunities for tax savings whether your goal is to get the most to your heirs or leave a charitable legacy.
Yahoo
04-08-2025
- Business
- Yahoo
Ohio's sales tax holiday runs through next week
COLUMBUS, Ohio (WJW) – Shoppers in Ohio are enjoying an expanded sales tax holiday. It kicked off on Aug. 1 and runs through Thursday, Aug. 14. Major construction project on I-90 starts Monday The tax holiday allows both online and in-store purchases of most eligible items — up to $500 per item — to be exempted from state sales tax. While the event is traditionally linked to back-to-school shopping, this year's extended holiday means a big break for families on nearly everything. According to the Ohio Department of Taxation, nearly all items are eligible, with some exceptions including services, vehicles, boats, liquor, tobacco, vapor products and items containing marijuana. Zoo asks people to donate their small pets as food Some eligible items include: Electronics: Computers, televisions and other gadgets Clothing: Any apparel items Books: All types, including novels and textbooks Home goods: Furniture, kitchenware and home décor Plants: Indoor and outdoor plants Sporting goods: Equipment and apparel for sports Food and beverages: Dine-in food, dietary supplements and soft drinks Click here for a full list of eligible and ineligible items. For questions, the department can be reached at 1-888-405-4039. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
