Capital Gains Tax - Main Residence Exemption
The largest tax concession in Australia is the capital gains tax (CGT) exemption for themain residence. Last year it cost the budget $46 billion and is predicted to cost the budget $189 billion over the next four years. Each year the cost of the CGT exemption on for the main residence costs the federal budget more than Defence, Education or Medicare.
With the government looking for budget savings that do not disproportionately impact low income households, it is appropriate to look at this very large tax concession.