Australia’s biggest tax break is not super, food or medicine – it’s the family home – highlighted in a recent article from startsat60.com
Australia’s tax coffers went without $61.5 billion in 2016-17 due to the Capital Gains Tax (CGT) break given on profits from the sale of the family home and other CGT concessions
This compares to the $33.1 billion in potential revenues forgone by the taxman due to tax breaks on super fund earnings and employers’ super contributions.
Read the full story here: Australia’s biggest tax break? It’s not super, food or medicine – Starts at 60
Further comment in the Guardian explains that figures released by Treasury in its 2016 tax expenditures statement show that the top 25 tax breaks in Australia are worth a combined $148.6bn, which compares to the budget deficit of $36.5bn.
New figures show the capital gains tax concession on the family home is now worth $61.5bn, almost double the $33bn lost to super tax concessions.
Given that Governments of all political persuasions are likely to continue to treat the tax-free main residence exemption as sacred territory, what avenues for tax reform, for big-hit budget-balancing measures remain?
The Guardian article presents the case for reeling super concessions, because they are not achieving their intended purpose. Read the full article here: Treasury figures show capital gains concession dwarfs superannuation tax breaks | Australia news | The Guardian
The real estate sector has reacted favorably. According to Stefan Kostarelis at sarealestatenews.com.au this is “good news”
Good news …for homeowners or those currently in the process of buying a home.
He goes on to recommend that:
Agents should consider including figures on recent capital gains in popular suburbs they are selling properties in as buyers will undoubtedly begin to consider buying a home as more of an investment than previously.