Summit Considers Comprehensive Tax Reforms with Focus on Negative Gearing
Summit Considers Comprehensive Tax Reforms with Focus on Negative Gearing
0
The Australian federal government's economic reform summit in Canberra is drawing attention with discussions on major tax overhauls, specifically scrutinising negative gearing as part of a broader suite of fiscal reforms.
As the three-day summit reaches its final discussions, key elements such as tax reform and budget sustainability are at the forefront.
Despite the government's pre-election commitment to maintain the current arrangements for negative gearing and the capital gains tax benefits, representatives at the forum are advocating for significant changes. Among these proposals, unions are pushing to restrict negative gearing to a single investment property per individual, while existing regulations may remain for the next five years. Additionally, a minimum tax rate of 25 percent for incomes exceeding $1 million annually has been proposed by union officials.
During the summit, tax expert Associate Professor Dale Boccabella emphasised the necessity of reevaluating capital gains and negative gearing policies as potential commitments for future electoral platforms. He criticised the current capital gains tax discount, highlighting its disproportionate benefit to the wealthiest individuals who may not require such significant tax relief.
Prof. Boccabella stressed the importance of ensuring the tax system's sustainability, linking it directly to the broader concept of fairness and addressing generational inequities. He argued that the government should not face criticism for pursuing negative gearing reforms, provided these actions are implemented in a sustainable and equitable manner.
Treasury Secretary Jenny Wilkinson is scheduled to present on budget sustainability during the summit's closing sessions. Meanwhile, Aruna Sathanapally, CEO of the Grattan Institute, will advocate for the development of a more effective tax system. Additional discussions are set to explore avenues for enhancing the efficiency of government services and expenditures.
According to Treasurer Jim Chalmers, these discussions have fostered consensus on crucial areas of economic reform. "We have already embarked on an ambitious agenda to reduce business burdens, cut red tape, and increase housing availability. However, we are committed to pursuing further advancements wherever feasible," Chalmers stated.
Published:Thursday, 21st Aug 2025 Source: Paige Estritori
The Australian Dollar (AUD) is experiencing increased pressure as uncertainties surrounding the Federal Reserve's stance on interest rates and U.S. economic growth persist. Meanwhile, the U.S. Dollar Index (DXY) maintains its strength, creating a challenging environment for the AUD. The Federal Reserve recently shared insights that inflation remains above its long-term goal of 2%, with notable impacts from tariffs influencing goods price inflation. - read more
The Australian federal government's economic reform summit in Canberra is drawing attention with discussions on major tax overhauls, specifically scrutinising negative gearing as part of a broader suite of fiscal reforms. As the three-day summit reaches its final discussions, key elements such as tax reform and budget sustainability are at the forefront. - read more
In a surprising downturn, the Australian dollar has faced a significant setback as market risks amplify. The DXY is showing strength, while the Chinese yuan remains stable. Gold markets exhibit fragility, and other metals signal caution with sustained bearish trends in the mining sector. Emerging markets have faced challenges, but junk bonds and yields appear resilient. Stock markets, however, took a hit amid the nervous financial climate. - read more
At the close of 2024, Cotality, the company formerly known as CoreLogic, reported that both the national dwelling value to income ratio and the income percentage needed for a new mortgage hit unprecedented highs. According to Cotality's housing report for July, the median dwelling value in Australia's capital cities was $926,854. Sydney and Brisbane, with median values of $1,228,435 and $934,623, respectively, were noted as the most expensive markets, reflecting impressive growth over the past five years. - read more
The Insurance Council of Australia (ICA) has aligned with a coalition of business groups urging the government to cut red tape ahead of the Economic Reform Roundtable hosted by Treasurer Jim Chalmers. The 27-member strong alliance is pushing for reforms that focus on increasing investment, fostering innovation, reducing red tape by 25% by 2030, and enhancing major project approvals. Additionally, they are advocating for tax reforms that won't adversely impact consumer or business costs. - read more
If you’re looking to finance a new or used jet ski, you may be wondering if it’s possible to get a loan with bad credit. The short answer is yes – and it may be easier than you think, but there are a few things you need to know before you start the process of applying for a loan. - read more
Welcome to our deep dive into the unexpected costs of owning a jet ski. While the thrill of skimming across the water on a sunny day is undeniable, it's important to be aware of the hidden expenses that come with owning such a high-adrenaline watercraft. - read more
Buying your first jetski is an exciting venture, offering a unique combination of fun, thrill, and the freedom to explore Australia's beautiful waterways. However, it's crucial to make a well-informed purchase to ensure that your investment complements your lifestyle and financial circumstances. - read more
Jet skiing is one of the most exhilarating water sports out there and owning a Jet Ski can be incredibly exciting. However, along with the excitement comes the responsibility of ensuring that your Jet Ski is well-maintained. Jet Ski maintenance is important for many reasons, and in this article, we will explore the reasons behind why it should be a top priority for any Jet Ski owner. - read more
Welcome to our comprehensive guide on the unexpected costs of owning a jet ski. While the idea of cruising on the open water can be exhilarating, it's essential to be aware of the hidden expenses that come along with owning a jet ski. - read more
Knowledgebase
Fixed Income: A type of investment that pays regular interest or dividends, such as bonds or preferred stocks.
