The federal government introduced some of the largest tax reforms in history in Tuesday’s budget. The reforms getting the most attention are changes to capital gains tax and negative gearing, which, together, are at the centre of the housing problem.
The CGT reform basically reverses the changes made by the Howard government, which argued that by simplifying the discount to a flat 50 per cent, it would encourage investment in the Australian share market, spur investors to buy and sell assets more frequently, and increase tax revenue.
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