Tax reform to target Australias distorting capital gains tax and negative gearing regimes could net the government A$5.3 billion in tax revenue per year, according to a new report from the Grattan Institute.
Tax reform to target Australias distorting capital gains tax and negative gearing regimes could net the government A$5.3 billion in tax revenue per year, according to a new report from the Grattan Institute.
The report recommends reducing the capital gains tax discount for individuals and trusts to 25%, and phasing in limits to negative gearing over 10 years.
The case for reform is extremely strong and we do not think that this is likely to lead to a material crash in the housing market, said the reports author John Daley.
Daley and report co-author Danielle Wood have modelled the impact of their recommendation on house prices, rents and the rate of new housing development, estimating house prices would be 2% lower than otherwise.
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