Sale of Luxury Property Should Be Taxed in Australia
January 11, 2016 Taxation in Australia
CANBERRA – Australia could earn billions in tax revenues by dropping the tax exemptions for the sale of high priced houses.
In a new research paper released on January 1th the independent think tank the Australia Institute claimed that the exemption of capital gains tax on the sale of property does little to benefit low-income families, instead providing significant benefits to the country’s wealthiest taxpayers.
It is estimated that in the 2015 – 2016 financial year the country’s wealthiest citizens will enjoy tax breaks of AUD 46 billion due to the capital gains tax exemption.
The total amount of the tax exemptions will rise to as much as AUD 189 billion from the tax exemption by the year 2020.
It was suggested that the tax exemptions should no longer apply to the sale of houses which cost more than AUD 2 million, a move which could raise tax collections by AUD 12 billion over the next four years.