Should the family homes tax exemption be scrapped?

A new report suggests that the capital gains tax exemption for the main residence should be scrapped.

Should the family homes tax exemption be scrapped?

A new report released on Monday by the independent think tank The Australia Institute has proposed that the capital gains tax (CGT) exemption for main residences should be scrapped for properties valued at $2 million or above.

Removal of these exemptions would result in revenues of around $12 billion over the next four years with the majority of the money coming from the nation's highest income earners. The report indicates that the exclusion of a homeowners' main residence from the current CGT, cost the budget $46 billion last year alone and, based on NATSEM modelling, Australia's poorest households received "almost no benefit" from the tax break.

AMP chairman Simon McKeon has backed the report, questioning why those wealthy enough to own expensive homes should get a "free kick".

"There are plenty of homes, particularly in Sydney and Melbourne and Perth, that you just say, why should they be exempt?" he said.

While Independent Senator Nick Xenophon said he was open to carefully calibrated changes to the CGT, a spokesman for Shadow Treasurer Chris Bowen said Labor are opposed to any changes that would see the CGT being applied to the family home.

Read more from www.heraldsun.com.au 

Read more from www.theage.com.au

Everything remains “on the table”

The next decade of decisions by our politicians will decide the future Australia with which our children and grandchildren are left when we are gone. The Turnbull Government is battling with an ever-increasing budget deficit and has suggested everything remains “on the table” regarding tax reform – and that any implemented changes would be “fair”. 

The idea behind removing the CGT exemption for the main residence valued over a certain amount makes a lot of sense in the scheme of things. The super rich just keep getting richer under current legislation, and there is no reason why a $5 million house should be given the same exemption as one worth $200,000.

The report released by The Australia Institute is a good start in prompting the Government to talk about the current CGT exemption rules, but I’m not convinced that a 100 per cent removal of the exemption for those with a house valued at $1 more than $2 million is an acceptable solution. Why not investigate a 75 per cent exemption for houses valued between $2-$3 million and lower the exemption as the price increases? There certainly has to be some middle ground in the discussion.

Either way you look at it, the Turnbull Government will be forced to make some significant legislation changes before the next budget and the CGT exemption should be closely considered along with the GST and negative gearing.

What do you think? Is the removal of the CGT exemption for houses valued over $2 million reasonable? If you don’t agree with the price of $2 million, what should it be set at? Or, should there be a sliding scale for CGT exemption?





    COMMENTS

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    12th Jan 2016
    10:05am
    Makes sense to me.

    I'd bring in CGT on properties worth much less, maybe $500,000.
    MICK
    12th Jan 2016
    4:17pm
    Might make sense to you but let's bring this in with no threshhold. I thought so!
    This is simply another 'story' in a long list of releases from the current government coming after average people. Nothing more. They are trying to massage average Australians because THEY have clearly already made the decision. Vote these bastards in again and it's game on.
    What readers fail to appreciate is that many other countries offer it's citizens tax relief in many areas. The US offers tax deductibility got holiday homes and even private residences whilst it has tax rate which make ours look like highway robbery. What we are seeing is the taxing of everything.....but here's the rub: this government refuses to go after the big end of town to which it is trying to desperately give more tax cuts under the guise of 'more jobs'. This is the next big lie as much of the extra taxes will flow into the bank accounts of the rich.
    Perhaps this current deadbeat government might tax multinationals at the correct tax rate. Oh no! Perhaps it might close the superannuation tax shelter which has been running for decades. Oh no! Perhaps it might stop squandering OUR tax money on BS and eliminate many of the useless jobs in the Public Service which are little more than BS and jobs for the boys. Oh no!
    Anybody who buys an "all on the table" bait is a fool as the game is to skin average citizens and enrich those at the top. And of course we all need to remember that our current PM Malcolm Turnbull is using a Cayman Islands tax shelter..............so what does that say?
    Blossom
    12th Jan 2016
    5:31pm
    We get no tax rebate on our PAYE on Rates and Taxes at all. In SA we pay stamp duty which adds several thousand dollars to the price of even a very basic family home (no ensuite which most have now), not BIR in extra bedrooms (only in the Master one). The only residences we don't pay stamp duty on is in a Retirement Village.
    roy
    12th Jan 2016
    7:28pm
    We all must vote independent.
    Frank
    12th Jan 2016
    10:08pm
    That makes a lot of sense mick. I have come around to your way of thinking. We are never going to get anything fixed until we do.
    niemakawa
    13th Jan 2016
    12:30am
    Please explain. One liners like yours add nothing.
    roy
    13th Jan 2016
    10:02am
    If we all vote independent then "ratbags" like Turnbull will not be in power, does that add something and I might even be an MP?
    How does that grab you?
    Anonymous
    13th Jan 2016
    10:06am
    Being an "Independent" might guarantee separation from party policies and bs, but doesn't guarantee good policy. Some independents I've seen are quite crazy.
    MICK
    13th Jan 2016
    2:00pm
    You miss the point Barak. It matters not if you elect Billy the Blacksmith because you break the corrupt behaviour from both sides of politics who are then forced to negotiate for their often crooked policy for their vested interests.
    The deal is to vote for the best from a bad pack.....BUT AVOID LIBERAL AND LABOR. And for my part I'll be making sure that my vote for an Independent has a preference which does not flow to the Liberal candidate as the current government is little more than big business running the nation with its puppets/stooges pretending they are our representatives.........which they are not.
    Anonymous
    13th Jan 2016
    2:26pm
    Not Greens?
    Anonymous
    13th Jan 2016
    2:27pm
    Not Greèns?
    Anonymous
    13th Jan 2016
    10:21pm
    No no no. Absolutely NO. Not Greens. NEVER. They are a disaster.
    Anonymous
    13th Jan 2016
    10:39pm
    I have to ask.

    Why?
    ex PS
    15th Jan 2016
    9:58am
    Mick, totally agree especially about voting for independants. It is not who you vote in that counts but who is in fear of being bvoted out. I have been trying to make this point for years without success, you may have just made it for me.

    12th Jan 2016
    10:10am
    Oh, and as for everything remaining on the table, I can't see an increase in income tax there.

    It should be.
    Hasbeen
    12th Jan 2016
    11:30am
    God I'm sick of bludgers.

    Strange how some people can grow up, grow old, but not grow any brains, or sense of fair play.

    When all of us oldies were making our way in the world the income tax on the average wage was just 7.25%. That was because we were not expected to keep a herd of drop kicks, in the comfort they wished to become accustomed. Why the hell should the kids of today pay any more than we did, just to keep dropkicks happy.

    Not only do the kids pay much more tax, the cost of a home is so much greater compared to after tax income, they have a hard enough time as it is.

    As for the family home, I paid tax on the money to buy it. I pain huge taxes to buy it, & any mythical increase in value just allows the council to charge me even more to live in it. I say mythical, as the so called value is useless to me, just some figures on a bit of paper. Even if I sell it, I'll need every bit of the sale price to replace it.

    Why the hell would anyone want to give a ratbag like Turnbull more money to waste. Time to cut spending, not pay more taxes.
    Anonymous
    12th Jan 2016
    12:54pm
    Curt which spending?
    MICK
    12th Jan 2016
    4:19pm
    Well written Hasbeen. Recognise that we are expendable and you understand the psyche of this government.
    Anonymous
    12th Jan 2016
    4:26pm
    Barak cut the pensioners back they get far to much money put them on food stamps to start with and if they run out of food they can get a hamper from the salvos.
    Every time I walk into a pub the Tab and pokies are full of these Bastards
    Lyn
    12th Jan 2016
    5:00pm
    Yes well said Hasbeen.

    Our children will never get ahead under the coalition govt. The economy will come to a grinding halt soon as people are not spending as they are counting every penny. Raising a family these day costs an arm and a leg.
    LiveItUp
    12th Jan 2016
    6:41pm
    Raising a family today only costs as much as you let it cost you. If you keep up with the Jones and give your kids everything then you need to seriously think about it.

    I can't see much difference with people's spending habits today as they have been in the past. Maybe the pensioners are not spending as much with low interest rates but families could be spending more.
    roy
    13th Jan 2016
    10:05am
    Hasbeen, there are another 12000 bludgers on the way here legally, and some more illegals were detected yesterday near Christmas Island.
    MICK
    13th Jan 2016
    1:56pm
    Coming to the land of milk and honey where the do-gooders line the streets bleating about the poor refugees. Mecha! Come on in spinner!
    Mike
    12th Jan 2016
    10:21am
    The median value of homes in Sydney are already around the million mark.Anyone buying a house now and retiring in 20 years time will be caught
    So NO Two million is not a reasonable figure for a family trying to buy a house now and THEN caught by CGT down the track
    Anonymous
    12th Jan 2016
    10:23am
    If you're retiring, you will no longer need the same sized home in the same place. You can move to a smaller house, maybe in a less expensive location.

    Pay the government a little tax from the unearned profits you make in selling the old house.

    Where's the problem in that?
    LiveItUp
    12th Jan 2016
    2:20pm
    The $2 million will be indexed to CPI so in 20 years time it should not affect you. If it does then you will have made enough money to pay CGT.

    $2 million is twice the median house price I Sydney so is more than reasonable.
    MICK
    12th Jan 2016
    4:20pm
    Indexed? What, like stamp duty?
    LiveItUp
    12th Jan 2016
    4:35pm
    Land tax thresholds are indexed so why not index this?

    Stamp duty is a tax not a value that can be indexed.
    Frank
    12th Jan 2016
    10:09pm
    The Liberal Government will never have any indexation. Same as stamp duty.
    Mike
    12th Jan 2016
    10:23am
    Hey Barak. Where in Sydney can you buy a house for under $500000
    Anonymous
    12th Jan 2016
    10:24am
    Irrelevant question.
    wally
    12th Jan 2016
    12:01pm
    Barak needs to explain why Mike's comment regarding house prices in Sydney, (as well as Melbourne and Perth ) is irrelevant. There must be a reason for this comment. Barak may live in a humpy beyond the black stump and use the local library's computer, but to set a cap of $500,000 for CGT exemptions on homes in Australia's most expensive cities betrays an ignorance of the reality of home prices there.

    Or is Barak a land and property developer in Oodnadatta South Australia and wants us all to up stakes and move there?
    Anonymous
    12th Jan 2016
    12:55pm
    Please explain the relevance of house prices in Sydney.

    If it means most people pay tax, so what?
    MICK
    12th Jan 2016
    4:21pm
    I think Barak must come from Mount Druitt. Not even sure prices there are $500,000 any more.
    Anonymous
    12th Jan 2016
    8:59pm
    Shallow.

    Nothing to contribute, so throw insults.
    Anonymous
    12th Jan 2016
    9:01pm
    Now you've stuffed up the logic of this thread.

    (If there ever was any.)
    Anonymous
    12th Jan 2016
    9:02pm
    To anyone confused my my past two posts above they were directed at Peterjj, who keeps removing his posts.
    Peterrj
    12th Jan 2016
    9:02pm
    mick, NEWS FLASH, I have cracked the Narak thought code!!!

    He comes from the 'Please Explain' Pauline Hanson school of thought!!!

    OK, it was a slow news day!!!

    I now wait for Narak to post, 'Peterrj, please explain'!!! LOL!!!
    Peterrj
    12th Jan 2016
    9:18pm
    LOL and I thought you were having a 'go' at mick?

    Moi????
    Anonymous
    12th Jan 2016
    10:19pm
    Peterjj - you must have deleted and re-entered your own post at least three times in the above, now meaningless mess, all the time while I was replying to what you posted, each time.

    Do have a think about taking that approach again.
    Gra
    12th Jan 2016
    10:54pm
    Have a look on Domain Mike, plenty of places for sale around Camden for around the $500,000 price range. If you want to live in the inner suburbs expect to pay a premium. Gets me how city folk expect to have it all at the expense of others.
    Peterrj
    13th Jan 2016
    12:52am
    Narak: It's called fly fishing .. it works all the time??
    Anonymous
    13th Jan 2016
    8:22am
    Peterjj - is "Narak" meant to be an insult? Or funny?

    I'm neither offended nor amused, because I have no idea why you're writing it. What does it mean?

    Your behaviour here makes these conversations quite confusing.
    Cooky
    12th Jan 2016
    10:34am
    One Million Dollars Plus would suit, because that would Include All the Politicians as well.
    MICK
    12th Jan 2016
    4:23pm
    I might expect the big end of town and politicians to move their houses into a Trust or the like to avoid this. Average citizens are normally the only ones caught out in an attack on society by politicians.
    Cooky
    12th Jan 2016
    10:35am
    Noooooo, Don't Scrap the Exemption. Include ALL the Politicians, James Packers & the likes
    of.
    mogo51
    12th Jan 2016
    11:19am
    It remains to be seen whether the current or future governments will pursue this obvious source of revenue. Just as they feel no hesitation in attacking the pensioners and the needy, nor should they shrink from this necessary action. With many areas such having over $1m price tags on 'working class homes' of the past, this figure seems near the mark. Perhaps a sliding scale between $1m and $2m would be more equitable.
    MICK
    12th Jan 2016
    4:24pm
    So why not go after multinationals and the huge sum of tax avoided money the rich accumulate with their tax shelters.
    mogo51
    12th Jan 2016
    11:20am
    that figure is too low (500k) is just an average home out west Sydney.
    Anonymous
    12th Jan 2016
    12:56pm
    So what?
    KSS
    12th Jan 2016
    1:46pm
    I agree mogo51 and what about 'bracket creep'? What seems like a lot of money now, won't in a few years and CGT may well be the final disincentive for people to move. Housing stock movement stagnates and tax revenue falls. Better to tax the final sale i.e. a deceased estate instead. No-one loses, everybody wins.
    MICK
    12th Jan 2016
    4:25pm
    Remember what has happened to Stamp Duty. Never readjusted from what I understand. Same for the tax system for average folk.
    Gra
    12th Jan 2016
    10:55pm
    So if you want to live in a Taj Mahal, expect to pay a premium.
    roy
    13th Jan 2016
    10:14am
    Mogo51.Just wait until mortgage interest rates go up which is inevitable and there will be so many repossessions in the Sydney, Melbourne,Brisbane and Adelaide areas, what value the million dollar homes then.
    Cashed up buyers will make an absolute fortune.
    Interest rates are far too low for anybodies good.
    MICK
    13th Jan 2016
    1:55pm
    True of other assets as well mick2.
    FM
    12th Jan 2016
    11:28am
    Why do we take the opinions of lobby groups such as The Australian Institute and the Grattan Institute seriously. The have no role whatsoever in governing our country or in determining financial policy nor should they be given one. Their opinions are generally right wing and Fascist in nature prepared to single out some particular group to be bullied or robbed so that their clientele can have an advantage. In this case their target group is senior Australians whom they have been bullying and browbeating for the past three years and who are thought to own homes in this price bracket. The beneficiary group would be young high income earners who would get tax cuts. The family home is not taxed in any country so Australia would lead the way backwards. Eventually everyone would be caught up in this. If people's homes are taxed, when they sell them they will have serious difficulty buying a new home if they need to relocate as Australians frequently do whether to a new area or in the case of the seniors to a nursing home.
    Mygasheater
    12th Jan 2016
    11:42am
    Don't worry FM, neither party will move on this one, least of all the NLP.

    The Australia Institute has released a number of reports into the mining industry, the number employed in mining, the amount of subsidies paid and the return to the Australian taxpayer. ( Have a look at the Australia Institute website.) The NLP didn't act on that.
    Anonymous
    12th Jan 2016
    12:57pm
    The NLP?
    MICK
    12th Jan 2016
    4:27pm
    Unlikely that some of these 'Institutes' are independent in any way. Those who head then are for the most part very well heeled people who have affiliations with the Liberal Party. So what does that say?
    Mygasheater
    12th Jan 2016
    11:43am
    Bring back death duties.
    jackie
    12th Jan 2016
    12:02pm
    Mygasheater That will only affect the poor. All the rich hide their money and avoid taxes overseas just like Turnbull does.
    Anonymous
    12th Jan 2016
    12:57pm
    Yes, bring back death duties. They hurt nobody.
    Drewbie
    12th Jan 2016
    1:37pm
    Mygasheater, no offence meant, but you really are ignorant re - death duties. They already exist. Nigh on 3 yrs ago my dad died after a brief, valiant battle with cancer. He had a respected 38 yr teachers career in the Victorian Primary school system, rising to the rank of Principal. After he passed away in may 2013, death duties were applied to his Estate. As if honestly paying taxes all his life wasn't enough; Government had to slug his wife & children for so called "loss of income tax revenue" after he'd "passed beyond the veil".

    Death duties should/must be permanently abolished because they are a Government's ultimate nose-thumb, blatant greed & betrayal of any hard-working Aussie, "who has done the right thing" on behalf of other Australians.
    KSS
    12th Jan 2016
    1:59pm
    Drewbie, I am sorry for your loss but terms such as 'slug his wife and children' seems disingenuous to say the least. On the basis of the information you provided, I would guess your father was at least 60 when he passed. His 'children' then were likely adults and not financially dependant on him. Its drawing a very long bow to say the 'children' were disadvantaged in any way by those death duties.

    And just because your Father happened to be a teacher and school principal does make him any different to any other working Australian who raised a family regardless of what occupation they may have had.

    Compare your situation to my own Father's passing in the UK in 2008 where 40% tax was levied on his entire estate as death duties. His 'estate' amounted to a very modest bungalow and a few shares and a 15 year old car and his clothes (yup, his clothes were assessed as well). That 40% tax did not 'slug his ..... children' at all. We simply inherited a little less.
    roy
    12th Jan 2016
    2:33pm
    KSS. I thought that the first £300 or £350 was exempt from Inheritance tax in the UK and 40% on the balance so if you father had a very modest bungalow etc how much did you have to pay and what did you get, if you'll forgive my interest?
    It would not be on his entire estate that's for sure.
    MICK
    12th Jan 2016
    4:29pm
    The above post is not from me. YLC ALLOWS OTHERS TO DO THIS.

    For what it is worth Death Duties are likely to be coming back. I have been saying this for some time and a desperate and greedy government will play the card at some time I'd suggest.
    roy
    12th Jan 2016
    6:15pm
    It's £325000 per person before any tax is paid, that's say $650000 here before any tax is paid, I could live with that. It's also with the aid of a good lawyer to legally avoid or reduce the potential bill.
    roy
    12th Jan 2016
    6:16pm
    KSS, still awaiting a comment from you.
    KSS
    12th Jan 2016
    8:46pm
    Mick yes its was on the entire estate.

    We had to value ALL his property in the house right down to the crockery. Of course the value is second hand sales value but still you have to include a nominal figure. The tax is assessed on everything from the teaspoons to the house and shares and bank accounts. If I remember correctly the house was sold for around 210K pounds - as I said it was a very modest 2 bedroom house. All up his assets for tax assessment was about 250k pounds and we still had to pay the 40% tax on it. That was in 2008.
    Frank
    12th Jan 2016
    10:14pm
    I believe that Hockey was working on death duties before he was terminated.
    roy
    13th Jan 2016
    9:50am
    KSS, in 2008, the Inheritance tax threshold was £312000 so there would have been no tax to pay on £250000 methinks the British Government owes you in the region of £100000 tax back.
    Just Google IHT 2008 UK.
    Whose advice did you take because unless I am very much mistaken something has gone wrong somewhere?
    jackie
    12th Jan 2016
    11:59am
    It would be a better idea for the Turnbull government and its elitists to cut back on their tax payer, personal expenditure and stopped welfare entirely for the rich. Unfortunately that will never happen with this government.
    wally
    12th Jan 2016
    12:03pm
    I wonder how much CGT Malcolm would be paying on his house in Point Piper.
    KSS
    12th Jan 2016
    1:35pm
    Only if he sold it!
    MICK
    12th Jan 2016
    4:30pm
    Now that will be interesting. The rich will likely find their 'outs'. They normally do.
    Sundays
    12th Jan 2016
    12:13pm
    I'm definitely against capital gains tax on the family home no matter how much it is worth. There are enough taxes already in ownin a home and the buying and selling costs can be exhorbitant. Once these things get through, it wouldn't take long for the thresholds to be decreased. There should be incentives to save and invest, if only in your home
    MICK
    12th Jan 2016
    4:31pm
    Well make your vote count. That is what the ballot box is for.
    roy
    12th Jan 2016
    7:12pm
    We must all vote independent, it's the way forward.
    Peterrj
    12th Jan 2016
    9:44pm
    On more the one occasion mick has complained that someone else has stolen his post name???? Yeah right!!!

    Well the two 'mick' posts above do not indicate any literary forgery???

    So mick is talking to himself or ......
    Frank
    12th Jan 2016
    10:15pm
    I totally agree with you mick. Thanks for letting voters know how to make their votes count.
    Jacka
    12th Jan 2016
    12:22pm
    Barak obviously lived in a tent or Housing Commission, good on you, you really made a success of your life haven't you. Don't bring others down because you lack of responsibility.Jacka
    Anonymous
    12th Jan 2016
    7:39pm
    Why the insulting post? Care to remain polite and discuss the issue?
    MICK
    13th Jan 2016
    1:54pm
    Maybe some of your posts are a bit gah gah Barak.
    Young
    12th Jan 2016
    12:39pm
    If you sell your home for over 2 million then you should pay capital gains.
    We will go the way of many European countries if we are not prepared to rein in our spending,and when we do this then some groups of people will have to suffer.
    Politicians should also help the cause by giving up some of their perks.
    We all need to cut back.
    MICK
    12th Jan 2016
    4:32pm
    Really? How about COLLECTING tax from your mates? Not an option? That is the issue here.
    Rae
    12th Jan 2016
    5:33pm
    Why is it our problem Young? Everything was going very well until the neo liberal ideologists changed it. Let them cut back.
    KSS
    12th Jan 2016
    9:38pm
    "We will go the way of many European countries if we are not prepared to rein in our spending,and when we do this then some groups of people will have to suffer."

    As long it is 'others' not 'me' eh Young? ;-))
    MICK
    13th Jan 2016
    1:53pm
    And if governments refuse to collect taxes from the rich and multinationals. That is the real sore in our economy. Easier to go after the weakest rather than the crooks who operate on a large scale and who have political 'protection'.
    KSS
    12th Jan 2016
    1:34pm
    I think there are more issues at stake here than a simple yes/no/maybe option on charging CGT on the primary residence or not and if so where to draw the line where it kicks in.

    Let's take a hypothetical situation as an example: a young couple save for their first home, say a 1 bedroom unit in a major city. Mum and Dad kick the can for some of the deposit and they forego the annual upgrade to the mobile phone and the foreign holidays and meals out to pay the mortgage (I did say this was a hypothetical!). They work hard over the next 5 years and repay the loan from M&D. But then along comes baby number 1. A one bedroom unit is no longer appropriate so they decide to sell up and buy a small 2 bedroom house or unit, further away from the city centre. They can afford to do this - just - by the sale of their first home (because they have more equity in it and the value has increased and they make a small profit) and an increased mortgage. Another 5 years and another child and all of a sudden they need another bedroom. So they sell up, use the proceeds to buy a 4 bedroom house in suburbia with distant views of the ocean and National Park. Roll forward thirty years. Now well into their 60s, kids grown and moved away and the two of them are rattling around in a house that is way too big for them and they don't want the upkeep anymore. They decide to sell up, buy a nice new 2 bedroom unit and use the proceeds to supplement their superannuation thus removing them of the need for a state funded pension.

    So far this is how it works now. They may well have paid stamp duty on all three previous purchases but no CGT and in fact the capital gains has partially allowed them to upgrade to their next home. So what if when they die - say 10 - 20 years later - and the last home - the 2 bedroom unit - is taxed under CGT? Who loses out? Their kids will still get an inheritance albeit a bit lower, (the kids would most likely just sell it anyway), the owners have had the benefit of their hard work without penalty and the Government gets another slice of the pie. Looks like a win/win/win to me. After all, the CGT on a home is only real once you sell and you get what someone is prepared to pay. Sometimes this is less than you paid in the first place!
    LiveItUp
    12th Jan 2016
    2:14pm
    Capital gains tax is only paid on profits. This article is talking about properties worth more than $2 million which indexed to the CPI will be double or triple that in 30 years time. It would have to be a very up market 2 bedroom unit to subject to CGT. I can't see how this will effect your scenario at all.
    KSS
    12th Jan 2016
    3:48pm
    Bonny the cost of units also increases. I don't know where you are but already in Sydney a new 2 bedroom apartment costs around the million mark.
    LiveItUp
    12th Jan 2016
    4:03pm
    Even if a unit costs $1 million today it is only half the proposed figure of $2 million. Units usually increases less than other properties so I can't see a problem with this especially if it's indexed to CPI.
    Rae
    12th Jan 2016
    5:39pm
    And if property prices tank or stay the same does that mean the capital loss rolls over to other investments? Will interest on the family home become tax deductions if it is classed as an investment?
    LiveItUp
    12th Jan 2016
    6:33pm
    It depends on the legislation. Under current legislation capital losses can be carried forward and applied against future capital gains.
    roy
    12th Jan 2016
    6:56pm
    Still awaiting a comment on your made up scenario re Inheritance tax in the UK, your father's modest bungalow.
    LiveItUp
    12th Jan 2016
    8:02pm
    Toy boy inherited $500 from his Great Grandfathers shack in Ireland.
    Frank
    12th Jan 2016
    10:17pm
    That does not sound like you. Who is posting under your name?
    Peterrj
    13th Jan 2016
    12:59am
    Frank: Only one person has admitted to having a 'toy boy' on this site! But if I was a bloke then I would not be bragging about having a toy boy??? Sounds like he did not have a big inheritance in any case!
    niemakawa
    13th Jan 2016
    1:13am
    There would need to be some offsets along the line. One would be the tax-deduct-ability of interest on loans (mortgages), as is the case with investment properties at the moment.
    MICK
    13th Jan 2016
    1:51pm
    We used to have that niemakawa. They took it off us. So waht do you think that governments would do long term? Just have a look at Stamp Duty on property purchases in NSW and you'll see how reluctant governments are to be fair. They won't be if Turnbull and his corrupt government get their way. Up to you Australians......pick your poison!
    LiveItUp
    12th Jan 2016
    2:07pm
    Good idea removing the CGT exemption for properties over $2 million. If this amount is indexed by the CPI then it should not worry the average Australian.

    Can anyone honestly see this happening?

    Also they should add the house to the pension assets test to get rid of the biggest inequity of the pension.
    MICK
    12th Jan 2016
    4:33pm
    It won't be indexed. Sucked in!
    LiveItUp
    12th Jan 2016
    4:36pm
    Good it will catch more people out then.
    roy
    12th Jan 2016
    6:10pm
    Well said Bonny.
    KSS
    12th Jan 2016
    9:10pm
    Bonny indexing to CPI would not be enough. CPI for the last 4 years has been in the region of 1-2%. However, in the area I live some 20k from Sydney, an example of one block of 12 units built in the early 1970s, prices for a 2 bedroom unit unrenovated (i.e. original bathrooms and kitchens) with LUG have risen from just over $400,000 in Jan 2012 to $685,000 in Dec 2015. A "profit" of $285,000 - about 71% - far more than CPI. The trouble is, if you were to sell and buy something else in the area you would need all that and more even to buy another 2 bed unit in a more modern building. Tax that profit and add to stamp duty and people just won't move on because they won't be able to afford it. That's why I say tax the final sale on the death of the owner. Everyone wins - including the Government who still get their cut.
    LiveItUp
    12th Jan 2016
    9:47pm
    Being your own home you would be lucky to time it that well. A investor might for a quick profit. There are many years in which the CPI is greater than the increase in property prices. The early 1990s are a good example where property prices in Sydney actually fell and took over a decade to recover and rise a bit. Average time people stay in one property is about 7 years from memory.

    This scenario would irrelevant anyway as it's well below the $2 million dollar level. Idea is to catch the wealthy people who make most of the profits in real estate anyway.
    niemakawa
    13th Jan 2016
    1:19am
    Bonny, you seem to have an aversion to the wealthy. Perhaps home ownership should be scrapped altogether and we all work and live in communes for the good of the Nation. No I think that one has been tried elsewhere, but like all socialist experiments they never work.
    MICK
    13th Jan 2016
    1:48pm
    Think we have had this thread before niemakawa. The rich deserve what they make but the real issue is that the rich are not content with more than everybody else and want it all: low or no taxes and to own everything. I would have thought that America would show us all that!
    Wstaton
    13th Jan 2016
    1:59pm
    Yes indeed mick. There seems to be somewhat of an arrogance to some people who are rich.

    Look at the way Packer reacted because a security guard didn't recognise him and refused him entry to a casino.

    Swore at the guard and pushed him aside.

    Why?

    Because in his arrogance everyone should know him being a rich billionaire.

    And how did he become rich? His dad left it all to him.
    Fred
    13th Jan 2016
    9:47pm
    The majority of European countries have death duties and look at the state they are in. Death duties is a Tax on a Tax just like we now complain about Duty on Petrol, Gog, and Fags and on top of that we get GST so that is a Tax on a Tax. Some people who grew up very poor and struggled to put food on the table are now in their 60s 70s and 80s and a vast majority want to leave something for their kids so they don't have to go through what they went through.

    Yes PACKER was left a lot of money and property by his old man just like his old man left Kerry PACKER a fair bit of money but Kerry made that money work he employed people and expanded the business I just wonder if his son has the same know how and can improve the businesses his Dad passed onto him. Now if they had to pay Death Duties how many of those businesses would have to close to pay the Death duties and how many people would be out of work. I have no problems of the Parents passing on to their Siblings what they have worked for as long as normal taxes were paid but Death Duties can ruin businesses.
    BigBen
    12th Jan 2016
    2:11pm
    The threshold of $2 million before CGT is payable can be index linked which will help to reduce CGT liability creep.
    The amount of CGT payable can also be on a sliding scale dependent on how long the property has been lived in i.e. the longer it has been lived in the lower the CGT payable.
    LiveItUp
    12th Jan 2016
    2:17pm
    If you can afford to buy a $2 million property today then you can afford to pay CGT on it's profits when you sell.
    KSS
    12th Jan 2016
    3:50pm
    Not necessarily Bonny. That depends on the cost of the next property you want to buy even if you are at the point of downsizing. It is not just one property that will increase in value. They all will. What $2m will buy today will be very different in 5, 10, 20 years time.
    LiveItUp
    12th Jan 2016
    4:00pm
    Not if it is indexed to CPI. Property normally increases with CPI or less over time.

    If it is indexed to CPI and still above that figure then you can afford to pay CGT.
    MICK
    12th Jan 2016
    4:35pm
    Bonny: you show very little intelligence at times. Tell me if what $1 million could buy you in 1970 and tell me what it can buy you today. Your argument is flawed as any threshhold will never be indexed.
    LiveItUp
    12th Jan 2016
    4:41pm
    But the threshold will be indexed to CPI. Land tax thresholds are indexed.

    I know all about inflation and in fact it is a good friend of mine. I borrow money today and in ten years I pay back less, 20 years even less, etc.

    If it was not indexed it would have a dramatic effect on property and bring the construction industry to it's knees as the median price approached this level. May even cause a recession.
    KSS
    12th Jan 2016
    9:19pm
    Bonny we just received our land tax valuation and the threshold increase since the last valuation in 2012 is 11.5%. Not indexed to CPI at all.
    LiveItUp
    12th Jan 2016
    10:01pm
    The land tax valuation on your land has nothing to do with CPI. If you are liable to pay land tax then the threshold above which you pay land tax increases with the CPI. This changes every year in NSW.

    NSW land tax rates and thresholds.
    http://www.osr.nsw.gov.au/taxes/land/rate#lt16

    As you can see properties in NSW at approx. $3 million and above are subject to land tax even if you live in them. note how it has increased over the years.
    Frank
    12th Jan 2016
    10:19pm
    The issue Bonny is where Land Tax cuts in. Same deal as bracket creep. Don't think that any Liberal government will ever try to keep it fair because that is not how Liberal governments work.
    Peterrj
    13th Jan 2016
    1:05am
    Sorry boys, I think Bonny won this post hands down!!!
    Wstaton
    12th Jan 2016
    4:34pm
    My thoughts on the family home was that the exemption came about because usually when one sells a family home the expectation was that they would replace it with another. So why should capital gains be submitted on it.

    There again if one had a $2 million dollar house and the intention was to sell it for a cheaper one so to gain the money to spend then surely this could be said that it is a capital gain. Then it could be said that a cgt should be applied to the total amount minus the cost of the new house.

    It should be remembered that a sort of gain is held against pensioners. If they sell their family home they have a year in which to buy another or it will be construed that is money eligible for deeming. I they buy a cheaper house then what is left is eligible for deeming.

    So one could say why doesn't this apply to cgt for any house sold. It is the real gain that counts.
    Rae
    12th Jan 2016
    5:53pm
    It was the problem of negative gearing. If the house is taxed on sale then the interest should be tax deductible. Governments don't care about us. It is the money that they are after. And the power.
    Not a Bludger
    12th Jan 2016
    4:52pm
    Can we not stop reporting these so called experts (and politicians) all of whom are being paid (mainly with my taxes) whilst they try to get into my (as a result of all the risks taken by me + hard work) house, super & other assets - they are mine - I earned them and no one has the right to any part of them or the right to tell me what I have to do with them.

    Nick off.
    Rae
    12th Jan 2016
    5:56pm
    Exactly as I feel too. If they had not brought millions of immigrants in, lowered income tax, sold all assets that made money or saved rents, signed expensive contracts for services being poorly delivered etc,etc there would be plenty of revenue.

    Over it. Not my problem.
    roy
    13th Jan 2016
    10:08am
    Rae, whose problem is it then?
    Pickles
    12th Jan 2016
    4:56pm
    I agree that houses over 2m should be CG Taxed however I also think that any house purchased by an over seas person no matter what its value should have a CGT The reason I say this is because I have known this is because a number of people I have known Have come here for a number of years then sold the houses they bought and the gone back to live on the proceeds of that sale so their living here has virtually done nothing for Australia except put housing prices up
    roy
    12th Jan 2016
    6:06pm
    Absolutely right Pickles, a lot of the growth in house prices has been caused by cashed up foreigners buying here, CGT all the way.
    KSS
    12th Jan 2016
    9:30pm
    Pickles that might well be some sort of solution. Add CGT to ALL property that is not owned and occupied by Australian citizens.

    Then perhaps reduce the amount of time you can rent out your property whilst still calling it the principal residence (when working overseas for instance) before CGT becomes applicable from the current 6 years to say 3 or 4 years.
    Frank
    12th Jan 2016
    10:21pm
    You miss the point that Australians are taxed on everything. Tax seems to be a way of compensating for governments which misuse public money. This is the game at hand.
    ex PS
    15th Jan 2016
    10:12am
    Frank,EXACTLY!
    Blossom
    12th Jan 2016
    5:25pm
    $500,000.00 is a bit harsh. Unless you do out into the outskirts of Adelaide about 3/4 hour drive you will not buy a reasonable family on a block that children have minimal play space. Land Values on which ex Housing Trust are built are in excess of $520,000.00 without Govt duties that are added in some states. Some home units (nothing flash) not in expensive areas have had price increases because of Valuer General decisions and are on very small patches of soil. The State and Local Govts are getting multiple revenue payments for what was one block. All rates and taxes have increased significantly over the years. Given the cost of basic Maintenance, Rates and all Taxes many people are in actual fact not making a profit at all. Looks live we need to keep all accounts pertaining to the cost of our house to prove whether or not infact we have made a profit - because some vertainly don't.

    12th Jan 2016
    6:09pm
    Is everyone here basing their view on what the cutoff point should be purely on their own circumstances?

    Is anyone thinking of what's best for the whole economy?
    Not a Bludger
    12th Jan 2016
    6:14pm
    Not my problem, Barak - I am not (and do not wish to be) a so-called social engineer.
    Anonymous
    12th Jan 2016
    6:20pm
    Whose problem is it?
    roy
    12th Jan 2016
    6:57pm
    We all have to vote Independent, that will cure it.
    Anonymous
    12th Jan 2016
    9:12pm
    This thread is a perfect example of the modern Australian political ideology - uninformed, unthinking, short term, self interest.

    The country is doomed.
    Frank
    12th Jan 2016
    10:23pm
    You have the solution mick but my benefactors in the Liberal Party would never allow it and Australians are easily manipulated. We'll sort it out so don't worry.
    Peterrj
    13th Jan 2016
    1:28am
    Barak, at last, you have said something ... and you are right!

    Self interest is rife except, perhaps, for the mysterious postings made by Bonny who likes playing with us!!!!

    Of all the hot wind blown on YLC it's mainly self serving!!! And often wrong facts are touted as absolute fact! It's mainly, I, I, I.

    Rational debate is lacking which does not allow the true picture to be disclosed.

    Retirees are heading for the financial chopping block as there is no consensus of opinion ... The only hope is to vote for an independent 'who gives their preference to Labor!'

    Yeah, right!

    I've had it. Good luck to you all ... I'm out'a here to go hunting Whale Sharks off WA after I come back from Trasure Island.. I just hope that I don't become shark bait!!!

    Good Bye!!!!!
    *Imagine*
    12th Jan 2016
    6:32pm
    I had an investment property some years ago and paid CGT on its sale. I knew this would happen and so I kept records of any capital expenditure. Who does that on their home? My present house is worth much more than when I bought it because I have added rooms, a pool, pergolas, etc etc. I have not kept records because there was no need. This CGT thought bubble is absolute nonsense. It cannot work unless we start the CGT from some future point and only on newly purchased properties. Which party would commit political suicide by putting CGT on a primary home before removing negative gearing on investment properties? This CGT issue is not worth getting worked up about, it is detracting from the real issues of equity and equality that we should be demanding political action on NOW.
    LiveItUp
    12th Jan 2016
    6:37pm
    If your property Is not worth $2 million or more then it shouldn't worry you.

    I think it is a good idea.
    *Imagine*
    12th Jan 2016
    9:36pm
    Bonny. Will it still be a good idea when you personally have to keep receipts and records for all upgrades to your home?
    My home in SA rust bucket State is nowhere near half the suggested cut off point. However, I imagine if this suggestion were to get over the line, then it certainly wouldn't be restricted to an arbitrary cut off for all time - it would affect us all. My gripe is that we could all come up with ideas that are half thought out and poorly researched. That is the major problem with every level of Government and so called "think tanks" of any persuasion in this great country. Our elected representatives appear to bumble along wasting money through ill conceived ideas or incompetence - doesn't matter, they can just touch the citizens for more and keep on with more of the same. What happened to real foresight and planning? Why are we so far behind other developed nations on many counts, when, as a country, we are so well off? It beggars belief!
    LiveItUp
    12th Jan 2016
    9:52pm
    I keep all the records plus an asset register on my own home so I know how much it costs me and when I sell if I do in fact make a profit. Of all the properties I've owned as homes none have ever made me a real profit so I would not have paid any CGT on any of them.
    Frank
    12th Jan 2016
    10:25pm
    You are assuming that home owners will get tax deductions. Tony would not have allowed that and Malcolm won't either. I'll try and find out the benefits of moving ownership of my house to the Cayman Islands. If it's good enough for Mal then it's good enough for me.
    niemakawa
    13th Jan 2016
    12:36am
    So if CGT was introduced at any level would this also mean that such homes would not be included in the assets tests for Government benefits? Would it be levied on the sale of the property or on an annual basis. A lot of unanswered questions and the debate will rage on by all politicians, so I do not see any changes for at least 10 years or more.
    Happy Jack
    13th Jan 2016
    9:59am
    Hey Mick! where's germsjerk69? I'm very concerned as to his welfare. Have heard bugger all from him since the LIEBERAL party offices closed for Christmas. I'd hazard a guess that they've stood him down over the break to avoid paying penalty rates over the holidays. I'm presuming that he will be re-employed when the LiEBERAL party opens the office shortly so he can come on with his pathetic defence of the LIBERAL party attacks on those least able to defend themselves.
    roy
    13th Jan 2016
    10:06am
    Another reason why we must all vote independent.
    Fred
    13th Jan 2016
    11:01am
    Let us talk about Pensioners in figures I read the other day out of 33 Countries in the OECD Australia is second last in the amount of money it pays it's Pensioners as a percentage of the GDP. America, England, Norway, Iceland and a lot of other spend far more of their GDP on their pensioners than Australia does. How about getting off the Pensioners back the vast majority have worked all their lives paid their taxes had at least a couple of Children and so in the past few years just about everything the parents have bought for their kids has had the GST on it so they have paid their taxes and should not be penalized more by having their Houses counted in for Tax purposes as for death duties most of the things you own you have paid a tax on at one time or another ie say a Hammer bought years ago sales tax would have applied to to that. Most Parents want to leave their kids something to make their lives a little easier so why tax the dead after all they even paid GST for their funeral. Let's look at the very high wages Politicians get over $500,000 for the PM alone and there are the rest of the Politicians both State and Federal and then the Councils years ago it was a privilege to serve on a council and they did not get paid just expenses. As for Religions any one make them pat taxes why should they be exempt. The large overseas companies yep they should pay there share of taxes too. As a couple of members on this site continue to crap on about the deficit of this Country don't forget we did not have one until the Rudd/Gillard/Rudd spent everything we had and borrowed a lot more, as I understand this current government is spending a lot of money we don't have because of the commitments put into legislation by Rudd and Gillard. We are in a mess but don't punish the pensioner who helped to make this country great.
    Wstaton
    13th Jan 2016
    12:03pm
    Yes after reading the full OECD report (365 pages) It showed that Australia paid 3.6% of GDP for pensions. Out of curiosity I looked at what Russia paid 13.2%.

    Chile was the country that beat us for bottom place at 3.3%

    Makes one wonder why this country is called "The Lucky Country"
    Mandy
    13th Jan 2016
    12:09pm
    Finally someone talking sense.
    Happy Jack
    13th Jan 2016
    11:57am
    Right Mick! I'm thinking of moving to Tassie and voting for Lambie, seems to be one of the few with any principles. Even Palmer, although a bit scattered brained politicaly, seems to have the best intersts of the disadvantged at heart. Pity he couldn't hold the team together.
    Not Senile Yet!
    13th Jan 2016
    12:25pm
    Constant argy bargy about left or right wing idealism id what is playing into the Party Puppets hands.
    Everyone on here is missing the point....the reason why OZ is broke is not because they are not getting enough tax income....that is just a Party Puppet LIE!!!!
    They have more tax than ever.....the REAL CHALLENGE is how to STOP the Party Puppets from BLOWING THE BUDGET endlessly and then Blaming the Previous Government whilst they Keep Over Spending!!!!
    Oz doesn't need more tax income......it needs better Economic Management through BUDGET BALANCES......neither over nor under!
    You will never get that from either corrupt Party Machine and their Party Puppets......who keep racking up the debt and blaming others!
    Vote the Corrupt Wankers Out Next Election!!!
    Vote Independent and remember to put the PARTY Puppets Last!!!!
    They cannot corrupt the system if they are not there!!!!
    As for Taxing any home....regardless of Price.....please remember the Government has received 10% GST on every brick, wall, kitchen shower, appliances...yeah everything.... etc etc already!!!!
    They do not need more!!!!
    They simply need to stop spending up big to keep up with the Yanks and others!!!!
    Come on...4 million for a CEO to run Australia Post......that whilst losing money on stamps has increased it profit elsewhere...namely Parcel Delivery....which is now counted as separate revenue!!!!
    Come on wake up People.....all the Puppets at the top are self feeding parasites who give themselves huge wage increases while the worker is restricted to less than the CPI and tied to productivity increases!!!!
    Wake Up!!!!!
    Stop the Left did this and the Right did that.....They are currently playing tag team and laughing at all who continue to vote for Corrupt Party Puppets.....who have no intention of being responsible for BLOWING YET ANOTHER BUDGET!!!!
    Name ONE Party that HAS Balanced a budget????
    There isn't one.....and there never will be one!!!!
    STOP VOTING THE CORRUPT SELF SERVING PUPPETS INTO PARLIAMENT!!!!
    Yes you are all voting for them....otherwise none of them would get in!!!!
    Wise Up...You want change...Then YOU need to Change how you Vote!!!!!
    Stop being a Donkey and following the Donkey Cards handed out by the Parties....ALL of them.....they are just glorified Power Clubs....created to Corrupt a good system!!!
    mIKER
    13th Jan 2016
    1:05pm
    Don't worry NSY, this is just a thought bubble intended to make us dummies think that this Government may actually tax people who have used every contrivence to avoid paying tax, whilst PAYE mugs keep replenishing Government coffers.
    It will never happen as most MPs already live in $2 million properties and they will nver pass legislation that hurts their own pocket.
    Anonymous
    13th Jan 2016
    1:09pm
    ....in exactly the same way that almost everyone posting in this thread has proposed a threshold that suits their current circumstances.

    No long term thinking. No thinking about others.

    It ain't just the pollies who are selfish.
    roy
    13th Jan 2016
    2:14pm
    Let's storm the Bastille, roll on Juillet quatorze, or July the 14th, we can show them.
    Vote independent.
    Fred
    13th Jan 2016
    9:08pm
    The last Government to balance the budget from memory and I have not checked this on Google was the HOWARD government that appears so long ago now.
    Fred
    13th Jan 2016
    9:26pm
    The Premier of Queensland just got a $9000 pay rise and that is just her every one else would also get a pay rise and of course they deserve it like hell.
    Anonymous
    14th Jan 2016
    4:57pm
    Fred - balancing the budget isn't anywhere near as important as it's claimed to be by some.

    Menzies spent most of his time as PM running a deficit.

    Some believe that right now, with interestrates at an all-time low, it's a great time to have a debt, as long as you do the right thing with the money you have.
    libsareliars
    13th Jan 2016
    1:03pm
    Spot on Mick! Totally agree with you. Kick this mob out!
    libsareliars
    13th Jan 2016
    1:08pm
    spot on Mick.
    Fred
    13th Jan 2016
    9:22pm
    They are all liars not just the Lib's as you make out libsareliars in telling lies would be hard to differentiate between the major parties. Years ago people became Politicians because they wanted to do something for the country, that was when this country was he envy of the rest of the world now we get people who go to School leave High School, go to Unit join one of the Major parties leave uni work for what ever major party they support then snivel their way to the top to get elected without ever doing a real days work in their whole lives. Strange isn't it that before you can join most Police Forces in this Country they require you to have life experience. A mate of mines son tried to join straight from school and was told come back in a few years when you have experience life a bit. Maybe the same requirement should be put on Politicians
    ex PS
    15th Jan 2016
    10:21am
    Unfortunatley, if you want to succeed in one of the so called major partys, you need to either have a Law Degree, or be an ex- union official. Neither would give you a look into the real lives of voters.
    Politicians get paid remarkably well for a job that has no written application, interview or formal qualifications attatched to it.
    We have given the current bunch of politicains a sense of entitlement by believing that only the LNP or the ALP have a right to form a Government.
    We have caused the problem, have we got the guts to be part of the solution?
    Rob
    14th Jan 2016
    1:20pm
    I wonder why Mr McKeon didn't make this suggestion all those years prior to recently selling his multi- million dollar home.
    ex PS
    15th Jan 2016
    10:10am
    What is never discussed, probably because it would shed the light on the unfairness of taxing the family hime is this.
    Some off the people who live in million dollar properties bought them in areas along the coast that were not popular at the time. Since then the area has become more popular and attracted millionaire buyers, this resulted in proerties that may have been bought at below median prices in the 60's now worth millions.
    So the question is, in these cases, is it fair that these people or the people who have inherited these properties be forced out so that well off people can buy the property knock it down and build MacMansions?
    Surely a fairer system would be that money can be recouped by the government if the property is sold to someone outside the immwediate family? Not one I would see as ideal, but if the vultures need to be fed, this would be a fairer way of doing it.
    Adrianus
    15th Jan 2016
    1:39pm
    Attention all readers.
    This is my only post on this thread. All other posts under the name Frank have been posted by mick. You can easily identify him by clicking on his name and seeing that he started the new identity on 9th January.
    mick you are a dick!
    Wstaton
    15th Jan 2016
    1:58pm
    How do you know it was mick. A date does not identify anyone.

    There seems also to be two micks one in 2014 and one in 2015
    Wstaton
    15th Jan 2016
    1:59pm
    This also seems to be a problem with signup. They should not allow the same name to be used.
    Adrianus
    15th Jan 2016
    2:43pm
    I have noticed at least 2 micks. I have suspected for a while that mick has his own fan club. He is patting himself on the back following stupid political statements on behalf of the Labor Party.
    Adrianus
    15th Jan 2016
    2:40pm
    Awe gee, You've got me there Wstaton.
    Maybe this was the clue......?
    “That makes a lot of sense mick. I have come around to your way of thinking. We are never going to get anything fixed until we do.”

    Or then again maybe it was this....
    “I believe that Hockey was working on death duties before he was terminated.”

    Nah, this maybe?......
    “I totally agree with you mick. Thanks for letting voters know how to make their votes count.”

    Gee it could have been this pearl of wisdom?....
    “You have the solution mick but my benefactors in the Liberal Party would never allow it and Australians are easily manipulated. We'll sort it out so don't worry.”
    Adrianus
    15th Jan 2016
    2:45pm
    mick is a troll and probably paid by the unions via GetUp.
    Anonymous
    15th Jan 2016
    2:52pm
    It may have been wiser to stop after "mick is a troll",
    Adrianus
    15th Jan 2016
    4:39pm
    Barak it's easy to be wise after the event, but thanks anyway for your wisdom. You must have picked up a lot of knowledge from your 9 weeks as a YLC member.
    Anonymous
    15th Jan 2016
    6:59pm
    Huh?
    Fred
    16th Jan 2016
    11:13am
    Let us look at Death Duties if they come in and the family home is included all that will happen is the government of the day will get a load of money that it is not entitled to because Tax has been paid on all the items that you will be paying Death duties on. What will the government do with all this money just like now they will waste on on the other hand if there are no Death Duties and the estate is passed down to the kids in the family then they will spend that money hopefully on something useful which means they will pay GST on what they buy. I have heard some people say leave it to Charity well from reading that the majority of CEO of Charities are on very big salaries sorry no won't be dong that. In the end there should be zero Death Duties the family home should not be included in you assets for for an Old Aged Pension and if you don't want to pass it onto the kids have a wale of a time living it up until you turn your toes up you have earnt it. The Governments got us into this mess with the deficit let them get us out without ripping money off the pensioners.