New analysis has found that Bill Shorten and Labor are set to thump Australians with the highest capital gains tax in the world.
While Capital Gains Tax is a feature of most modern economies and has been part of the Australian Tax system since it was introduced in 1985 by the then Labor government, Labor’s plans to increase CGT will mean many Australians will pay an unprecedented rate of tax on their small investments.
The Weekend Australian Reported:
Shifting his focus from Bill Shorten’s proposal to limit negative gearing to new dwellings and the “retiree tax”, the Treasurer yesterday cited government analysis that showed Australians would be taxed up to 36.75 per cent on their capital gains under Labor’s policy, up from 23.5 per cent now.
By comparison, US taxpayers face a 23.8 per cent tax on capital gains, the British pay 28 per cent on residential property and 20 per cent on other assets, while Canadians are taxed at 16.5 per cent, according to the modelling.
Analysis obtained by The Weekend Australian also revealed 885,530 taxpayers reported a capital gain in 2015-16, with about half of their investments in shares and a quarter in real estate.
Mr Frydenberg said Labor’s plan to increase the capital gains tax by 50 per cent had “gone under the radar” but it would have “far-reaching consequences” for people who invested in property and shares.
“Labor’s plan to make Australians pay a capital gains tax rate that is higher than comparable countries such as the US, UK, Canada, NZ, Japan and Germany is destructive to say the least,” he said. “Independent economic analysis confirms it will not only hurt confidence in the market but reduce GDP growth, lower real wages, increase rents and undermine economic activity overall.”
The message here is simple – a vote for Labor and the Greens means higher taxes and a weaker economy.
As we’ve reported previously, Labor is creating an election war chest with eight new tax measures, including the retiree tax and changes to negative gearing. Labor will tax Australians an extra $160 billion over the coming decade.
That’s on top of an extra $122 billion that we will pay because Labor opposed reductions in personal income tax cuts. In fact, under Labor, more than a million Australians will have a top marginal tax rate of a whopping 49% within 6 years. The last time we had marginal tax rates that high was 30 years ago when Paul Keating was Treasurer!
It’s clear that Labor led by Bill Shorten is planning to be a massive “tax and spend” government. Bigger government and higher taxes will make mainstream Australians poorer.