Subject: Capital gains tax myths debunked

⚡️ Highlights:

1. Sydney auctioneer Tom Panos criticized the Albanese government's rumored changes to the capital gains tax (CGT) discount, warning that it could make property investment less attractive by reducing after-tax returns.

2. Panos argued that any changes to the CGT discount could lead to unintended consequences, including an increase in rents due to a decrease in rental properties and an imbalance in supply and demand.

3. Data from the Australian Bureau of Statistics (ABS) showed that property investors mainly purchase established dwellings over new builds, contributing to higher demand for existing rental properties.

4. Contrary to Panos' argument, Melbourne experienced a reduction in property investors due to tax reforms, yet rental affordability improved over the past year compared to the national average.

5. While changes to the CGT discount may have a minor impact on the housing market, addressing Australia's structural housing imbalance would require a smaller and better targeted immigration system, according to Panos.

✍️ Leith van Onselen | Full Article

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