Major new poll calls for the scrapping of CGT discount
The Australia Institute says the federal government should axe perks for investors to help first home buyers.
NEW polling conducted for think tank The Australia Institute has shown broad support for reducing the perks which give property investors a significant advantage over owner-occupiers in the property market.
Even Liberal voters are ready to scrap the capital gains tax discount introduced by the Howard government in1999, which has enabled investors to pay tax on just half of what they make when they sell an investment property.
Similarly, a majority of voters are ready to put limits on negative gearing, which also provides huge tax breaks for investors, like making interest payments tax deductible.
In a national poll of 1502 people, conducted by YouGov, 50 per cent of respondents agreed with the statement: The Commonwealth Government should reduce tax concessions for property investors, such as the capital gains tax discount and negative gearing.
Only 28 per cent disagreed.
In separate polls in the seats of Kooyong, Mackellar, Wentworth and Farrer, conducted by uComms, between 52 per cent and 62 per cent of respondents agreed with the same question.
In the national poll, Independent (63 per cent), Labor (59 per cent) and Greens (57 per cent) voters believe tax concessions for property investors should be reduced.
In the seat-by-seat polling, more Liberal voters in Sussan Ley’s old seat of Farrer agreed with cutting tax concessions for property investors than disagreed. Same with One Nation voters.
“These perks have distorted the property market for a generation, skewing it massively in favour of wealthy investors at the expense of owner occupiers, particularly first home buyers,” said Matt Grudnoff, Senior Economist at The Australia Institute.
“Not only have they been forced to compete with cashed-up investors who enjoy huge tax breaks while they pay off their investment properties – and even bigger ones when they sell them – those same tax breaks have helped send property prices out of reach for many Australians.
“It is absolutely imperative that in this year’s Budget the government reverses this 25-year trend of juicing demand for housing and scrap the capital gains tax discount.
“The CGT discount is the biggest single incentive for investors. By scrapping it, the federal government will advantage first home buyers, helping more Australians into a home of their own.”
