Chapter:
13 - Government Finance
Mover:
David Wedgwood
Seconder:
Daniel Gerrard
 
 
Source:
EEIRT Policy Committee
My Private Notes


Preamble
​In 1999, the Profligate Howard/Costello Government destroyed the Australian Capital Gains Tax system introduced by Paul Keating in the Hawke/Keating tax reforms of 1985.  This motion proposes to restore equity in the Australian Tax system by treating income derived from increases in the real value of assets in the same way as earned income such as salary, wages and interest.  This will have the effect, over time, of restoring the ability of Australians to afford a home of their own, and reduce the unproductive investment in housing (which is currently the highest percentage of GDP in the world).
General Resolution

Restoring the Keating tax equity legacy

​Noting that the "Capital Gains Tax discount" will cost the Australian Government 19.05 billion dollars in 2024/2025, ACT Labor supports restoring fairness to the Australian taxation system as follows:
1) Restore fairness between income earned from work and income earned from capital appreciation ("capital gains" realised at sale) so they are taxed on the same basis.  This would involve: 
a) treating such income equally, with income earned from either source during a financial year taxed as income in that year (as is currently the case); and
b) taxing capital gains realised at the end of a period of more than 1 year on a real value basis (i.e. assessed by reducing the gain by the applicable indexation over the relevant period).
2) To enable individuals to make appropriate arrangements, this change should apply from 1 July 2025 and not be retrospective, and
3) That copies of this motion be forwarded to the Australian Treasurer, the Secretary of the Albanese Labor Government Caucus, and the 4 ACT ALP Members of the Australian Parliament.