Newspaper article The Morning Bulletin (Rockhampton, Australia)

Tax Reform Must Hit Mark

Newspaper article The Morning Bulletin (Rockhampton, Australia)

Tax Reform Must Hit Mark

Article excerpt

TAX reform is shaping up as the big topic for 2016, so prepare yourself for the good, the bad, the ugly and the downright stupid.

And if there were a contest for stupid ideas, one that was floated recently would have to be a strong contender for first place.

AMP chairman Simon McKeon suggested it was time to consider capital gains tax on the family home.

Any government that brought in CGT on the family home would create a nightmare.

As the law stands, all expenses for non-income producing properties bought since August 20, 1991 can be added to the base cost.

Typical examples are a beach house that is not rented out, or vacant land.

So, if you bought a beach house in 2007 and borrowed money to buy it, you could claim all your interest, as well as rates, land tax, insurance, maintenance etc.

As the property is not income-producing, there is no deduction allowed for these items each year -- but they are added to the base cost and so reduce any CGT payable when the property is sold. …

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