Family homes face a wealth tax

I

investor888

Looks like the Rudd government is entertaining the idea of slapping a capital gains tax on the family home, and making the family home interest deductible. Initially on $2m+ homes, but how long then would it take to slowly bring that threshhold down.

If they did go in this direction, then no doubt, negative gearing would eventually be removed for investment properties.

Given government have spent so much in stimulus, they will now try and find anyway to increase the tax revenue.

Family homes face a wealth tax
http://www.theaustralian.news.com.au/story/0,25197,25931551-601,00.html
 
would cause a boom in top end property as people neg gear their family homes... pretty tempting. would beat investing in rentals
 
So if I am one of the 33% who have their house fully paid off, I am now compelled to take a LOC and invest in deductible assets to compensate me for the cgt on my ppr.

This is just as likely to cause a misallocation of borrowed money by inflating property and share prices.

I wonder if they'll only tax the rate of growth minus inflation, or will they double dip (cgt and inflation)

And why would I take out a P&I loan if paying down principal reduces my ppr tax deds? Won't everyone be going for IOs?
 
Sounds like one of many,many things that go towards parlament, few get the go ahead, I will wait untill it actually happens, ?
 
The Henry review proposed lots of things, including not allowing access to super (not just the age pension) til age 67. A lot of things in there will never become policy.

FWIW, I do think a CGT on PPOR over a certain high limit is probably inevitable, but in the longer term.
 
We are headed for the revolution...
Viva La Revolución!

rudd-defends-jet-set-diplomacy-6262579.jpg


STALIN.jpg


Viva La Revolución!
 
this henry tax review seems to be causing a lot of anxiety.

unfortunately property investors seem to be considered cash cows, epecially by state govt and particularly in south australia.

it would be nice if the GST would some how reduce the state taxes but it has not happened so far.

lets hope the PPOR is not going to be subject to CGT and that super will not be harder to access or be more complicated.

messing with the family home will not be popular. but it has been suggested in the past re bonds etc for entry to aged care, but was quickly changed.

goodness knows what the new rules will be.
regards
 
Hi, won't happen. Very simple. If I can't lay my hands on my money, I don't give it to them. If they tax me on my home, I immediately become homeless.

Want to bet that if they try that, we go from an home owner nation to one of total renters?

And Kevin Rudd may be voted out if he tries anything cute.

KY
 
meh, can't see it happening (although with Labor nothing would surprise me! :rolleyes:), but if it does we just work with/around it they way we do with all the other taxes that exist.
 
lol You really think I wish to pay more tax on something I paid tax on to buy and I've already been paying tax on to keep!?

And btw we do have royalty, we have a queen, a future cuckold king and some swastika wearing prince.
This country voted Monarchy, not democracy.
 
heyi reckon it's great - it only targets homes over $2mil.

which means NO ONE will sell in the $2mil+ bracket but run up an LOC instead.

i see values now suddenly increasing to just under the limit.

set , and the market will follow. just like the FHG and FHB in their early days. cur off for FHOG used to be $220k here in WA - so everything that was 175k+ was suddenly $210k.

labour are such fools.
 
pully said:
this henry tax review seems to be causing a lot of anxiety.
Click to expand...

This Henry tax review seems to be causing a lot of hot air.

Labor held their national conference a couple of weeks ago, I think, where they unanimously voted to ignore several likely recommendations. Idiots. What's the point in reviewing the system if they're not even going to consider the measures put forward...?
 
investor888 said:
If they did go in this direction, then no doubt, negative gearing would eventually be removed for investment properties.


Family homes face a wealth tax
http://www.theaustralian.news.com.au/story/0,25197,25931551-601,00.html
Click to expand...
I just can't see them doing that in this term,if Mr Rudd and his team go in for a second term then who knows,it may look good to the people who write in the media,but it did not work last time and Rudd-Swan would not be that stupid because then you would see some serious problems in property investing,if they cut out such expenses..imho willair..
 
Strannik said:
you gotta give him one thing, he took the country in ruins and civil war, and made it a superpower ;)
Click to expand...

While the population was reduced to slavery & poverty and a police state rife with abuse of power and corruption.
Sure we have the last 2, but at least you get a shot at improvement rather than risk getting shot.
 
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