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Treasury works on capital gains tax reform

Work is under way within Treasury on options for capital gains tax reform despite ministers saying it's not on the government's agenda.

Residential property is seen on the Gold Coast
The federal Treasury has produced modelling and other work on capital gains tax reform. (AAP)

The federal Treasury has produced modelling and other work on capital gains tax reform.

AAP sought, via a freedom of information search, correspondence, meeting notes and reports of modelling produced by Treasury in relation to potential changes to CGT produced between November 2016 and mid-February.

The request, which is still being processed, has turned up 97 pages of material.

In February, Prime Minister Malcolm Turnbull declined to answer a Labor question in parliament about whether he had personally sought advice or modelling on the issue.

However, he said the government was "paying very close attention to the damage that would be caused by the capital gains tax proposals of the Labor Party".

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Finance Minister Mathias Cormann said last month he was not working on any plans to changes CGT.

"I can assure you," he told media.

Labor has proposed reforming negative gearing and the capital gains tax discount, which it says will help young people seeking to buy their first home.

The two concessions cost the budget more than $10 billion a year and the amount is set to grow.

Shadow treasurer Chris Bowen told AAP on Thursday it was further evidence the government was divided over the issue and offering no confidence it could provide a plan for jobs, housing affordability and protecting the triple-A credit rating.

"It's completely unsurprising that Treasury has done work on changes to the CGT discount given the treasurer's refusal to rule out such changes," he said.

"Meanwhile the prime minister and finance minister continue to insist the government has no mandate for such changes and will not be pursuing them."

Treasurer Scott Morrison is expected to announce a housing affordability package in the May budget.


2 min read

Published

Source: AAP



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