Under Labor and Bill Shorten’s policies to help housing affordability, there is the policy to:

“Halve the capital gains tax discount for all assets purchased after 1 January 2020. This will reduce the capital gains tax discount from assets held longer than 12 months from 50 per cent to 25 per cent.”

I have to personally question whether the motive is to help housing affordability or whether this is just a way of raising taxes.

If you look at the statistics published by the Australian Taxation Office you will see that in the 2016-17 income tax year, there was $17.7 billion in capital gains relating to real estate situated in Australia.

This is less than 40% of the total $45 billion in capital gains reported by individuals in the 2016-17 income tax year. 

And as you can see in the below chart covering the last five years of data from the Australian Taxation Office, capital gains from real estate situated in Australia is less than 40 per cent of the total reported capital gains by individuals.

So over 60 per cent of reported capital gains has nothing to do with real estate situated in Australia. 

Which means share and other non-property investors are about to get a 50 per cent tax increase so that housing supposedly gets more affordable.  And it is not a small increase.  As you can see from the below table it could be as much as $2.4 billion.

So why aren’t the share and other non-property investors jumping up and down about a $2.4 billion per annum tax slug?

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