YOURLifeChoices member Alan has heard that the Federal Government, should it be re-elected, may be planning to introduce Capital Gains Tax on the sale of the family home. Is there any truth to this rumour?
Letter from Alan
There is growing speculation that the incumbent Federal Government, if re-elected, is planning to introduce a Capital Gains Tax (CGT) on the family home. Apparently the Treasurer is already in discussion with the ATO concerning its probable implementation in 2014. Such a tax will have ramifications for all homeowners, especially retirees. With the election campaign already kicked off by both major parties, it will be interesting to know if this topic will be given airtime before the upcoming Federal Election.
I have attempted to find out through various sources, but have not received any feedback from any of them, including the PM and political figures from both sides. I have put this question to the ABC’s Q&A on at least two occasions but to no avail. Is this a banned question?
Alan, this has been a source of much speculation for several years. It is also worth noting that the current Government will need to be re-elected for this to become an issue.
Back in 2009 the Federal Government stated it would not be extending CGT legislation to include the family home.You can find out more by reading the following article at ThePunch.com.au.
It’s hardly surprising that in the lead-up to a federal election this issue has again come to the fore, especially given that the current Government has been perceived to back-track on promises. Also Julia Gillard has made no secret of her intention to get tough with those deemed to be well-off. Now, pensioners selling the family home can seldom be described as being ‘well-off’, but there are several propositions which may impact retirees. Find out more from the following article on TheAge.com.au.
As this is nothing more than speculation at the moment, getting any concrete information is like pulling teeth; the Government is hardly likely to show its hand pre-election. We will, of course, continue to lobby politicians on this and other matters which affect older Australians.
Do you think Capital Gains Tax on the family home is the next revenue raising move by the Government?