Moncrieff Media

Capital gains tax on Coasters’ family homes? What ever next?

21 August 2009

The Rudd Labor Government refused to rule out a capital gains tax on the family home in Parliament today, says local MP Steven Ciobo.

"The Prime Minister in question time today repeatedly refused to give assurances to rule out a new tax on the family home,” Mr Ciobo said.

“Instead, he has responded to questioning from the Leader of the Opposition by effectively telling us that all options were on the table under the Henry Review, including capital gains tax (CGT) on the family home,” he said.

“Today’s developments further raise suspicions the speculation in the weekend media regarding the Henry review considering CGT on the family home was in fact well placed.

“Now we face a prospect of this Labor Government trying to fund its reckless spending by raiding what is mostly a family’s most significant asset – their home.  What's next, the family estate, with death duties"

A capital gains tax on the family home also represented a huge risk to the stability of the Gold Coast’s real estate market, he said.

"We cannot forget it was instability in house prices overseas that led to the global disaster that swept across financial markets.”

Mr Ciobo said Gold Coasters knew that in just 18 short months Labor's spending had plunged Australia from being a nation with net savings to a nation facing a $315 billion debt, ongoing budget deficits and a huge brake on spending capacity for years to come.

“This is a legacy that will burden generations today and tomorrow with higher interest rates and higher taxes.

"The Prime Minister's refusal to rule out a tax on the family home is as reckless as his spending,” Mr Ciobo said.