Brighter Selling

New tax on the family home?

by Kate Watt, Marketing Manager 22 January 2016

Media reports have been filled with news of a proposal to scrap the capital gains tax exemption on the family home. But don’t press the panic button yet.

The proposal, from the Australia Institute, is just that – a proposal; and it’s limited to family homes worth more than $2 million, which it says make up less than 1 per cent of Australian properties.

“The CGT exemption is costing the budget a fortune; $46 billion a year and rising – more than Australia’s entire defence budget,” The Australia Institute Executive Director Ben Oquist said in a press statement.

The Australian Institute has released its proposal as the Australian Government grapples with the tricky issue of tax reform.

If the proposal is adopted, Brisbane home owners would be likely to escape relatively unscathed, unlike our Sydney counterparts.

Domain crunched its numbers and found 60 suburbs in Sydney with a median price of $2 million or more. Outside these suburbs more than 1500 Sydney homes were listed for sale with asking prices above $2 million.

With Brisbane’s median house price at $615,000 in December 2015, we don’t need to worry just yet.

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