How tax planning distorts the property market

By Daryl Dixon
Updated October 1 2017 - 9:53am, first published September 8 2017 - 1:45am
20110528.  BRW.  Torquay. Generic Real Estate.  Property, for sale, sold, housing, growth, development, housing market, greater melbourne, home, residential, real estate, home buyer, rent, lease, land, interest rates, building.

Photograph by Arsineh Houspian.  +(61) 401 320 173.  arsineh@arsineh.com
20110528. BRW. Torquay. Generic Real Estate. Property, for sale, sold, housing, growth, development, housing market, greater melbourne, home, residential, real estate, home buyer, rent, lease, land, interest rates, building. Photograph by Arsineh Houspian. +(61) 401 320 173. arsineh@arsineh.com

Far from encouraging efficient use of the housing stock and improving housing affordability, proposals to increase the capital gains tax payable on the sale of investment properties could well add to current housing problems. A concerned reader highlighted this point arguing that even today's CGT levied on 50 per cent of the gain was deterring sales of his several inner-city properties.

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