Barnaby Joyce and Tanya Plibersek go head-to-head over rumoured capital gains tax changes
Treasurer Jim Chalmers will release his federal budget next month with taxes around housing a key issue.
Speculation is mounting the government could overhaul Australia’s capital gains tax in next month’s federal budget amid reports Treasurer Jim Chalmers is considering scrapping the current 50 per cent discount in favour of the pre-1999 indexation model.
Appearing on Sunrise on Monday, Social Services Minister Tanya Plibersek refused to speculate on whether any changes were coming, but One Nation MP Barnaby Joyce warned Australians they were about to get “walloped with a big new tax”.
WATCH THE VIDEO ABOVE: Barnaby Joyce warns of ‘big new tax’ as Sunrise clash erupts with Tanya Plibersek
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By continuing you agree to our Terms and Privacy Policy.Joyce argued Australians deserved clarity, particularly those who had made long-term investment decisions under the current system.
“A lot of people have premised how they invest on the basis of the capital gains tax. And if you start changing things, you’re basically reaching into other people’s pockets,” he said.
“I would not support a change in the capital gains tax at all.”
Plibersek declined to be drawn on federal budget measures, instead pointing to the government’s focus on housing affordability and intergenerational equity.
“We’ve seen almost 300,000 people, for example, use the benefit of our 5 per cent deposit scheme to get into a home of their own,” she said.
“The majority of those people wouldn’t be in a home of their own today if it wasn’t for the action that our government is taking to help Australians with home ownership.”
When asked directly whether she would like to see the capital gains tax discount removed, Plibersek instead referred to the dream of home ownership.
“I am, of course, like every parent, concerned that her own children will be able to own a home of their own one day,” she said.
“What I want to see is more homes built in Australia, and I want to make sure that these great programs, like the 5 per cent home deposit, are available to more people.”
Joyce suggested Plibersek’s refusal to comment on the matter was an indication that Australians were about to be hit with more new taxes.
Plibersek dismissed Joyce’s claims as fearmongering, calling them “another One Nation scare campaign”.
The government has not confirmed any changes to capital gains tax, with the federal budget set to be handed down on May 12.
Originally published on Sunrise
