No tax concession does less to stimulate innovation or employment than the capital gains tax exemption on luxury homes. Indeed, by encouraging the most wealthy Australians to park billions of dollars in spare bedrooms that gather dust and detritus from Christmases past, the exemption simply diverts capital away from productive uses.
The single largest tax concession in the revenue strapped Australian Federal Budget is the Capital Gains Tax (CGT) exemption on the primary residence. The exemption forgoes $46 billion annually – a greater sum than the government spends on the Age Pension, Defence or Medicare.
A new report by The Australia Institute, with modelling commissioned from NATSEM, also reveals that the top 20% of income by household reap more than half of the benefit of the CGT exemption (see figure 1 below).
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.
Polling in key Liberal and National Party seats shows strong opposition to reducing Sunday penalty rates for retail workers, according to new ReachTEL polling commissioned by The Australia Institute.
Polling conducted across the electorates of Page, New England, Warringah and Dickson on 17th December shows that between 65% and 79% of people in these electorates want Sunday penalty rates in the retail industry kept the same or increased.
“The research underscores the political difficulty any Government faces if they allow Sunday penalty rates to be cut,” said Ben Oquist, Executive Director of The Australia Institute.
Conservative electorates back a switch to 100% renewables by 2030 and a global moratorium on new coal mines, according to new ReachTEL polling commissioned by The Australia Institute.
A moratorium on new coal mines is backed by voters in heartland conservative Liberal and National party seats.